Global cotton prices have gained a lot during the last few weeks but faced some resistance during the current week.. The week started with notable drop in cotton prices at global front but ln the mid and end of week prices again increased and faced resistance to further increase and ended the week with some stable feeling. Although all the fundamentals are supporting the firm sentiment but COVID factor is restricting the buyers to accommodate further increase.
China cotton prices also showed mix trend with some some daily fluctuations. Prices showed some softness in the middle of the week but again ended the week with minor change. So it is expected that Chinese cotton prices may remain stable in near future.
Prices in the Indian cotton market remained soft during the whole week mainly due to good arrivals as Indian cotton picking is at Season’s peak. As prices increased a lot during the last few weeks therefore exporters were not feeling comfortable with these price hikes and market felt some selling pressure. This situation put some pressure on sellers and forced them to show some softness in their asking.
Pakistan cotton market is under great trouble during the last few years and regular drop in production is hurting the local industry. Now dependency on the imported cotton is increasing. Pakistan local cotton prices are maintaining firmness and same is expected during the rest of the season. Ginners having good quality cotton are standing firm to their asking and not ready to negotiate with buyers and willing to sell their cotton at desired levels. On the other hand spinners are buying cotton half heartedly at the present prices. Cotton season in Pakistan also ending with minimum stocks left with the ginners and traders.
No visible changes has been witnessed in the African cotton prices. Offer for the main Asian ports were made with 800 to 1,000 pints on March futures depending on the quality of cotton.