;
Home / Knowledge / News / Textiles / Indian cotton prices decline in Oct; Chinese remain stable
Indian cotton prices decline in Oct; Chinese remain stable
11
Nov '16
Prices of Indian Shankar-6 cotton recorded a decline in the month of October, witnessing a drop from 85 cents/lb in the previous month to 72 cents/lb. In local terms, the movement was from 44,700 to 37,700 INR/candy, says a recent report. The China Cotton (CC 3128B) index was generally steady over the past month, maintaining levels around 103 cents/lb.

“The movement in Indian prices over the past several months has been significant. Back in the spring, spot prices for Shankar-6 reached a low of 62 cents/lb. Shortly after, values began rising steadily as it became increasingly apparent that there was not enough cotton in storage in Indian warehouses to meet the needs of Indian mills. Compounding the effect of immediate needs on Indian prices this summer was the outlook for the 2016/17 harvest,” says the monthly economic report by Cotton Incorporated.

Due to more attractive prices for food crops and low yields in certain regions last season, Indian acreage dropped 10-15 per cent for the current crop year. In addition, the monsoon was late, casting doubts on yields and suggesting a small Indian crop for the 2016/17 harvest. All of this fed gains in Indian prices, which rose 50 per cent between their springtime low and their summertime high (92 cents/lb on July 19th).

However, monsoon arrived in early August and it proved to be exceptional in terms of both the volume and distribution of its rainfall. This generated increasingly optimistic estimates for Indian yields. Despite the 10 per cent reduction in planted acreage, Indian production is projected to be 2 per cent higher than a year ago, according to the report.

Pakistan was the largest importer for India in the last crop year, but India will have to look to the international market to make up for the decline in shipments to Pakistan this year. Export offers from India are now the cheapest among the 15 offers published by Cotlook that are eligible for inclusion in the average that is the A Index. From a competition standpoint, this has an influence on prices from other exporting countries.

As the 2016/17 crop year progresses, competition for exports may increase. This is because India is not the only exporting country projected to have an increase in exportable supply this crop year. Many other exporters are predicted to have meaningful increases in production, including the US (25 per cent), Australia (54 per cent), Brazil (20 per cent), and West Africa (16 per cent).

India, which is expected to have larger harvest than a month ago, is likely to both import and export 300,000 more bales (current import figure is 1.8 million and current export figure is 4.2 million). No other country had an import or export revision of more than 100,000 bales.

The harvest figure rose 586,000 bales (from 102.7 to 103.3 million). The only important country-level increases to crop numbers were for India (500,000 bales, to 27.0 million) and the US (128,000, to 16.2 million), according to the report. (KD)

Fibre2Fashion News Desk – India


Must ReadView All

Pakistan-Italy MoU to expand economic, trade cooperation

Textiles | On 14th Dec 2018

Pakistan-Italy MoU to expand economic, trade cooperation

Pakistan and Italy recently signed a memorandum of understanding...

South African parliament ratifies AfCFTA

Textiles | On 14th Dec 2018

South African parliament ratifies AfCFTA

The South African parliament recently ratified the agreement...

Jordan PM lays foundation stone for Chinese textile unit

Textiles | On 14th Dec 2018

Jordan PM lays foundation stone for Chinese textile unit

Jordanian Prime Minister Omar Razzaz recently laid the foundation...

Interviews View All

Top executives, Textile industry

Top executives
Textile industry

Defining MSMEs on the basis of turnover makes it simpler to do business

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli, Epson, For.Tex & F.lli Robustelli

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli
Epson, For.Tex & F.lli Robustelli

‘The percentage share of printing in the global textile market is pretty...

Pinkesh Jain, Everflow Petrofils Ltd

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Gagan Gulati,

Gagan Gulati

PG Silk Mills Private Limited had a humble start with a hand-dyeing unit....

Apurva Kothari,

Apurva Kothari

No Nasties was the first fashion brand in India to make 100 per cent...

Erik Sy,

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Kevin Nelson, TissueGen

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Robin Grankvist, OrganoClick AB

Robin Grankvist
OrganoClick AB

Robin Grankvist talks about PFCs, additives and various chemicals used in...

Silke Brand-Kirsch, Schlegel und Partner GmbH

Silke Brand-Kirsch
Schlegel und Partner GmbH

<div>Schlegel und Partner is the market research and consultancy company...

Pranav Mishra, Huemn

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Wendell Rodricks, Wendell Rodricks

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Hemant & Nandita, Hemant & Nandita

Hemant & Nandita
Hemant & Nandita

The designer duo of Hemant &amp; Nandita are known for being inspired by...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


December 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search