Global cotton benchmarks stable, Pakistani prices rise: Cotton Inc

The New York Intercontinental Exchange (NY/ICE) March contract for cotton has been trading within a stable range of 78 to 82 cents per pound since early December. Recent values have edged towards the higher end of this spectrum, reaching approximately 81 cents per pound.

The A Index, another key benchmark in the cotton industry, has shown little variation in the past month, maintaining a steady range between 90 and 92 cents per pound, Cotton Inc said in its Monthly Economic Letter - Cotton Market Fundamentals & Price Outlook - January 2024.

The China Cotton Index (CC 3128B) experienced slight gains in international terms, climbing from 103 to 105 cents per pound. Domestically, Chinese cotton prices fluctuated between 16,200 and 16,600 RMB per ton, with the RMB remaining relatively stable against the US dollar, trading between 7.09 and 7.18 RMB/USD.

Indian cotton prices, specifically for the Shankar-6 quality, remained consistent at around 85 cents per pound. In domestic terms, prices varied between ₹54,500 and ₹55,300 per candy, with the Indian rupee holding steady at around ₹83 per USD.

Contrasting with the general trend of stability, Pakistani cotton prices saw a significant increase, rising from 73 to 82 cents per pound. In Pakistani currency, the prices escalated from 17,000 to 19,000 PKR per maund. Concurrently, the Pakistani rupee experienced a slight appreciation, moving from 284 to 281 PKR/USD.

Overall, the global cotton market appears to be in a phase of relative stability, with the exception of the notable increase in prices within Pakistan.

Fibre2Fashion News Desk (KD)