Global Cotton Review May-2024

Monthly Cotton Price Movement: May 2024

Global Cotton Review May-2024

ICE Cotton Futures:

May 2024 exhibited significant fluctuations in the ICE Cotton Futures market. The month began with notable increases across all contracts, with the July’24 contract rising from 76.51 cents/lb on May 1 to a high of 82.43 cents/lb by May 28. The Oct’24, Dec’24, and Mar’25 contracts followed similar upward trends, peaking at 81.64, 79.12, and 80.60 cents/lb, respectively. However, a slight correction was observed towards the end of the month, with all contracts dropping slightly on the final trading days. Overall, the monthly change for the ICE Cotton Futures was mixed, with slight gains in the Oct’24 contract (+0.58 cents/lb) and minor losses in the Jul’24 (-0.36 cents/lb) and Dec’24 (-0.06 cents/lb) contracts.

CotLook Index A:

The CotLook Index A displayed an upward trajectory throughout May 2024. Starting at 88.30 cents/lb on May 1, the index reached a peak of 91.30 cents/lb by May 30, reflecting a monthly gain of 1.80 cents/lb.

China Cotton (CZCE):

China’s CZCE cotton prices were stable with minor fluctuations during the month. Beginning at 15,465 CNY/ton on May 1, the prices witnessed decline mid-month, hitting a low of 14,800 CNY/ton on May 15. However, prices rebounded towards the end of May, closing at 15,055 CNY/ton on May 31. The overall monthly change was a notable drop of 410 CNY/ton, suggesting possible fluctuations in domestic supply or demand factors.

Brazil Cotton:

Brazilian cotton prices exhibited a general downward trend. Starting at 75.60 cents/lb on May 1, prices fluctuated mildly but ultimately dropped to 74.23 cents/lb by May 31. The monthly average stood at 75.11 cents/lb, with a maximum of 76.74 cents/lb and a minimum of 74.10 cents/lb. The market saw a slight overall decline of 1.37 cents/lb.

Indian Cotton:

Indian cotton prices experienced a downward movement throughout May 2024. Prices decreased from 58,000 INR/Candy on May 1 to 57,500 INR/Candy by the end of the month. The average price for the month was 57,387 INR/Candy, indicating a reduction of 500 INR/Candy over the month.

Pakistan Cotton (KCA Spot Rate):

In Pakistan, the cotton market showed varied movements. The minimum KCA spot rate started at 19,000 PKR/Maund and remained stable throughout the month. The maximum rate, however, increased from 21,000 PKR/Maund on May 1 to 22,000 PKR/Maund by May 31, reflecting a rise of 1,000 PKR/Maund. The USC/Lb also showed an increase, peaking at 96.07 USC/Lb towards the end of the month, suggesting a strengthening in the local cotton prices. People also seen less interested in imported types as local harvesting season is approaching. It will be interesting to see if Pakistan get the same production like previous years as before the last years there were some miserable crop sizes affecting the viability of textile business.

Conclusion: Global Cotton Review May-2024

The cotton market in May 2024 was characterized by significant fluctuations across different regions. While ICE Cotton Futures and the CotLook Index A saw general upward trends, China and India experienced declines, and Brazil’s market remained relatively stable with a slight downward bias. Pakistan’s cotton market, however, showed an upward movement in maximum prices, indicating varying market dynamics influenced by regional factors. The overall mixed movements underscore the complexity and interdependence of global cotton markets.

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