Cotton Insights for July 25, 2016

  • Cotton prices traded mixed today at the major Indian markets on subdued demand.
  • Cotton prices edged lower by Rs.20-30/maund in North Indian markets whereas ruled steady at the major trading centers of Central and South India.
  • North India based mills are mostly sidelined from fresh deals as they are incurring huge losses amid disparity in Cotton. They are looking for either Cotton Yarn prices rise, or Cotton prices needed correct to balance the market.
  • Favorable weather for Cotton plant growth in Punjab, Haryana and Rajasthan followed by acceleration in sowing in other parts of the country has also pressured prices.
  • Gujarat sees no sign of improvement in weather condition and added pest infestation known as the Pink boll-worm is not helping the farmers at all. Cotton sowing so far has been reported lower by 12.72% at 8.69 million hectares.
  • Pakistan raw Cotton imports during June month dropped 36.69% compared with a month ago, while rose over 22.88% same period a year ago.
  • The drop in Pakistan import mainly attributed to commence of domestic new crop supplies followed by higher prices in the neighboring India.
  • Pakistan’s Cotton crop prospects for the current season 2016-17 not very bright as sowing target has been missed by a big margin of 21%.
  • With India’s export prices rocketing now, shipments of Cotton Yarn are down due to limited demand. Also, demand from China continued to shift to low cost suppliers, particularly Vietnam where many spinning mills are owned by Chinese investors.