Cotton future forecast for the rest of the season.

The cotton market has become so volatile during the past couple of years that it is hardly possible for anyone to project the future. To reach some conclusion we are going to submit some facts which can help you to at least have a general view of the cotton future market for the running crop year.

  1. This is clear that on a call-based basis points are not going to decrease for the rest of the season. Last years’ experience also shows that after September basis points moved higher and did not decrease at any stage.

2. Shipment positions for October’22 to February’23 are very tight if you want to go for a fresh booking.

3. It is expected that next WASDE report will now include decrease of production mainly in Pakistan as some major portion of crop wiped out by flood and possibly some corrections in China and Brazil too. So, this factor may push the prices higher.

4. Although some people hopeful for good crop in India but 1st of all its prices already at very high level and will follow the bullish sentiments prevailing around the globe.

5. The USA, being the largest exporter of cotton and always dictating market sentiments, has already shown a significant decrease in their production in WASDE report August. USA cotton early shipments almost sold out and we hardly have some options left before March’23 except for a few Recaps.

Recommendations for Buyers

Increase in raw material prices and hike in electricity prices have put the producers in great trouble and it has become difficult for them to manage or handle the current situation. We suggest that cotton buyers should go for unfix buying immediately and then keep watching the price movements and continue partial fixing according to their convenience. Risk taking strategy may cause big trouble whether it is by buying big quantities of fixed prices or by delaying the bookings and future can’t be trusted.

Sellers having physical possession of cotton also need to be very careful. They need to keep eying the growing carrying charges along with future projections.

To find the day by day price history of cotton kindly visite our website https://textilesbar.com/

Written By
Afzaal Khadim Khan
Textiles Bar