Asian Market Revival, Cotton Price Stands On New Stage

In recent weeks, ICE cotton futures continued to rise amid the rebound in US cotton exports and strong demand in China.

At the same time, the agreement on Sino US trade negotiations is just around the corner, and it also plays a strong role in promoting cotton price rise.

As prices continue to rise, import demand in Bangladesh and Vietnam is expected to increase.

A week later, the ICE cotton futures contract rose 0.64 cents, or 0.8%, while the December contract rose 1.45 cents, or 1.9%.

According to the US cotton export weekly, in the week ending March 28th, the signing amount of the US cotton increased sharply, prompting speculative capital to do more.

When the contract volume reached 322 thousand and 100 packs a week, it increased by 47% compared with the previous week. Vietnam and Bangladesh, including China, are the main buyers.

China has also shown a positive attitude towards Sino US trade negotiations. China has promised to purchase large quantities of US cotton as a condition for the cancellation of the 25% tariff imposed on US cotton.

At present, the US cotton that China is buying may arrive at Chinese ports at the end of negotiations in a few weeks.

Meanwhile, cotton production in India and Pakistan has led to a rise in cotton prices in both countries, stimulating demand for cotton imports from both countries.

As of April 1st, the new cotton market in Pakistan dropped by 6.9% over the same period last year.

Due to the delay of the India Pakistan trade to the end of the general election in India, the Pakistan textile mill has recently shifted its procurement target to other varieties, and the domestic cotton price in Pakistan has risen from 8600 rupees / Maud to 8700 rupees / Maud.

Cotton prices in India also decreased significantly last year, and domestic cotton prices continued to rise. In the past week, domestic S-6 spot prices rose by 1900 rupees / candle, or 4.3%, and 9% in the past four weeks.

In addition to India and Pakistan, Vietnam and Bangladesh's import demand is relatively limited, but with the decline in yarn stocks in both countries, the late cotton import demand is expected to rebound.