Cotton Market Shifts: Global Price Movements Across China, India & Pakistan
Global cotton benchmarks have generally decreased during the last month, as reported by Cotton Incorporated. The NY/ICE December contract has seen the most change in open interest, with the March contract now seeing prices of 80 cents per pound, down from 89 cents per pound last month. Also declining, from 97 to 89 cents per pound, was the A Index.
The China Cotton Index (CC 3128B) showed a decline in Chinese cotton prices from 114 to 106 cents per pound, or 18,400 to 17,100 RMB per ton. According to Cotton Inc. Cotton Market Fundamentals & Price Outlook - November 2023, the Chinese Renminbi (RMB) was steady compared to the US dollar, at a rate of roughly 7.29 RMB/USD.
The price decline for cotton was not as sharp in India. The price of a pound of Indian spot, namely Shankar-6 quality, dropped somewhat from 90 to 87 cents.
The Indian Rupee (INR) remained stable at about ?83 per USD, meaning that the candy value decreased domestically from ?59,000 to ?56,700.
In contrast to these patterns, the price per pound of Pakistani spot cotton increased from 72 to 75 cents. This resulted in an increase in domestic prices per maund from 16,600 to 17,700 PKR.
The value of the Pakistani Rupee (PKR) decreased somewhat in relation to the US dollar, from 280 to 285 PKR per USD.