Last week, cotton prices in the international market fell back to a lower level, with cotton prices in the United States, China and India all lowered, and Pakistani cotton prices experienced a short-term surge. At present, the Sino-US trade war is driving down the exchange rate of the renminbi. The trade situation of cotton and textiles between China and the United States in the coming weeks and even months is still unclear.
According to statistics, the ICE futures December contract price has fallen 0.76 cents to 87.08 cents/lb in the past week, down 0.87%. In the past four weeks, ICE futures December contract prices have risen 1.78 cents to 85.3 cents/lb.
Last week, China's cotton import demand was relatively weak,and textile companies waited and sentiment, and domestic cotton spot and futures prices were slightly lower. And the Indian rupee against the renminbi exchange rate rose sharply, Indian cotton prices were significantly higher than other countries' quotations, China's yarn import demand decreased, and Indian cotton prices began to fall. The listing of new cotton in Pakistan has been delayed, the shortage of domestic cotton supply is serious, and cotton prices have further soared.
An international cotton market believes that global cotton stocks will continue to decline, taking into account the decline in global cotton production and consumption increases next year. At the same time, considering that the outbreak of Sino-US trade war will lead to the shift of China's demand for US cotton, the depreciation of China's renminbi will inevitably lead to an increase in the price of cotton-denominated cotton. Recently, the Indian government is trying to increase the import tariffs on cotton in Pakistan. The support factor for international cotton prices will gradually increase next year. Can international cotton prices remain high and is the cotton price trend clear? Waiting for the market to give the correct answer.