Indian markets see clear drop in cotton prices

The Spinning mills are going through a difficult situation as the sudden drop in cotton futures has led to a drop in yarn enquiries at reasonable market prices. The looms owners are showing them prices of the New York futures market for December which is putting the mills in a fix. Good arrivals are reported even with wet weather conditions. Spot sales are good. Mills are cautious in buying due to inferior quality. Demand persists.

International

Cotlook A index has settled down to 79.60 cents per lbs while New York Futures were hovering at around 63.34 cents per lbs for Oct.14. The markets were seen to be having a free fall in the last fortnight as China as a buyer has huge stock reserve which they want to liquidate quickly while big international cotton merchants too had huge stocks lying unsold with them which has created panic in the market considering increase in cotton sowings worldwide anticipating a higher cotton crop in the upcoming season.

Cotton output may plunge in China as well as imports fallen by 42%. Vietnam govt. to assist in cotton cultivation. Light rains reported in Mephis, USA.

Research helped the Australian Cotton Industry to use less land and water. Mali to produce 600000 tonnes of cotton in 2014-15.

Indian Cotton Federation