The second week of January saw a surge in demand that caused cotton prices in Pakistan to rise from an average of Rs1700 per 40 kg to Rs20,000 per kg, an increase of roughly 15%. After that, rates were the same, while some locations also saw premium cotton for PKR 21,000 per 40 kg. The trade, however, remained tepid since mills were having trouble getting rid of cotton yarn in the nation’s all-cotton marketplaces.
Uncertainty persisted on a global scale as well. Traders are anticipating brighter times. According to Cotlook, the industry started to show signs of cautious optimism in December. However, the optimism was slightly muted by increased covid-19 cases in China, and “a turnaround of market attitude remained some way off,” the company noted. The market will stay quiet until business in China returns to normal.
Although the market for downstream textiles in December remained below what would be typical for the month, there was a minor uptick in optimism following China’s relaxation of COVID-19 limitations in late November. As a result, there was what was described as “a modest recovery in raw cotton demand” in several nations. Vietnam was one of the seldom nations to express interest in purchasing cotton from the world cotton markets. The Vietnamese mills saw a little increase in demand for cotton yarn before the Lunar New Year festival (which began on January 22).
Brazil Cotton expects to cost between US$0.73 and US$0.78 per pound or US$1.62 and US$1.71 per kilogram this year (lb.). The cost per kilogram is BRL 8.88 in Brazilian Real. The average tone cost in Rio de Janeiro and Brasilia is US$ 1620.8. According to current market prices, the highest pricing for cotton is 9297.00 Indian rupees per quintal in Bijapur, while the lowest rate is 769.00 Indian rupees per quintal in Kottur. Across all kinds, the average cost per quintal is 7881.00 INR.
Unsold cotton stockpiles are a concern for dealers in the U.S. In anticipation of the different cotton-specific and macroeconomic reports that indicate the lack of Index rebalancing activity, the cotton market in January was relatively calm. Before outside market news and a pessimistic WASDE report drove prices down, March futures spent most of the week having huge trading ranges but still making gains. Despite being heavily pressured, March futures only lost 54 points for the week ending January 12, ending at 82.04 cents per pound. Two hundred two thousand four hundred seventy-seven contracts are now up for business, an increase of 3,848 from the previous week.
Even while export sales increased, they still fell short for the week ending January 5. Net sales of 72,600 Upland bales booked for the week of the current marketing year, which is more than what has happened in prior weeks but below average than expected at this stage in the marketing year. With 19,600 Upland bales purchased, Turkey led all customers, followed by China (16,400), Vietnam (11.8), Pakistan (9.200), and China (16,400).
No new sales were recorded for the marketing year 2023–2024, although the week’s shipments appeared to be improving. 150,500 Upland bales were exported, which is more than prior export levels but less than the pace required for the current USDA projection. 3,300 Pima bales were reserved for 2022–2023, while 6,300 bales were shipped.
The World Agricultural Supply and Demand Estimates (WASDE) caught traders off guard, significantly increasing U.S. production. The anticipated output boosted to 14.68 million bales, and many people began to question where the crop would come from, given that ginning and classing are ending nationwide—similar tendencies found in the market in India. Domestic cotton consumption is sluggish, and export orders are challenging.
