In the past week, although some textile mills in India have resumed work, the price of Indian cotton yarn has stopped falling due to very low output. Cotton prices in India have fallen further.
At present, yarn production in India is still very limited, providing support for cotton yarn prices. However, since downstream demand is very light, there is little room for price increases.
At the same time, Indian cotton prices have fallen sharply, with S-6 falling 3.2% in a single week and a cumulative fall of 20% since the beginning of this year. Cotton Corporation of India resumed acquisitions, but actual purchases were small due to the blockade. At present, new Indian cotton has basically been launched on the market, and CCI acquisitions account for 30%. If CCI sells its stocks now, cotton prices will continue to plummet.
Currently, Indian cotton yarn export quotations have dropped by 10-15 rupees/kg. As China will enter the May Day holiday, the market expects Indian cotton yarn export prices to continue to fall. Affected by financial constraints, China canceled a large number of previous contracts last week.
