Global Cotton prices remained firm and upward during the current week. Upward movement of ICE cotton futures put its impact on all the leading cotton markets and forced the cotton prices higher. As USA cotton crop estimates are lower than the last year production so we may hope that prices of US cotton will retain firm posture with expectation of further increase.
Last week minor softness was observed in Indian cotton market but again this week prices rose higher in Indian market again. Indian cotton crop position is good and arrival figures are much better till now if compared with the same time period of last year. So, it is expected that Indian cotton prices may stabilize at the current level.
China cotton prices also gained some ground and ZCE futures traded 1st time above the level of 15,000 / ton. As Chinese cotton state reserves has nearly ended last year so we may expect further rise in China cotton prices during the next few months. Trade war between China and USA is also playing its but there is a hope that after the recent election and its results administration change in USA government may help to settle these issues. Mostly people standing with the rise in cotton market are giving weight to their opinion and arguing the further increase in all cases.
Pakistan cotton crop 2021/21 is nearly to its end and spinners are facing shortage of good quality cotton. Therefore, some abnormal higher price deals were witnessed in the Pak cotton market for fine quality fiber as after the recent increase in ICE cotton futures and trade ban with India imported cotton prices parity is not matching with the desired levels of Pakistan spinners. For the first time in current season Pak cotton prices touched the level of Rs. 11,000 / maund (37.324)