Market Analysis: International Cotton Prices Remain Stable, Pakistan Cotton Prices Rise

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Recently, the international cotton market has remained stable, and most benchmark prices have not changed much.

ICE cotton contract in March hovered at 78-82 cents/pound; The A-index held 90-92 cents/lb.

Cotton prices in China and India also remained stable, but Pakistan jumped from 73 cents to 82 cents per pound.

Cotton Incorporated said in a report that most of the benchmark prices in the global cotton market have changed little except for the significant increase in cotton prices in Pakistan.

Since the beginning of December, ICE cotton futures contracts in March have been trading within the stable range of 78-82 cents/lb. Recently, the price has gradually approached the high end of this range, reaching about 81 cents/pound.

　　Cotton In its Monthly Economic Research Report - Cotton Market Fundamentals and Price Outlook - January 2024, Inc said that the other key benchmark A index of the cotton industry had hardly changed in the past month and remained in the stable range of 90-92 cents/pound.

The China Cotton Index (CC3128B) on the international market rose slightly, from 103 cents to 105 cents/pound. Domestically, China's cotton price fluctuates between 16200-16600 yuan/ton, and the exchange rate of RMB against the US dollar remains relatively stable, between 7.09-7.18 yuan per US dollar.

Indian cotton prices, especially S-6 cotton, remain around 85 cents/pound. In China, the price is between 54500-55300 rupees/candy, and the Indian rupee exchange rate is stable at about 83 rupees per dollar.

Contrary to the overall stable trend, the cotton price in Pakistan rose sharply, from 73 cents to 82 cents/pound. In Pakistani currency, from 17000 rupees to 19000 rupees/gold. At the same time, the Pakistani rupee rose slightly from 284 rupees to 281 rupees/US dollar.

In general, the global cotton market seems to be in a relatively stable stage, except for the significant increase in cotton prices in Pakistan.