In the past week, Indian cotton yarn prices have continued to rise, while cotton prices are still falling. The poor quality of new cotton has forced spinners to actively import foreign cotton, leaving cotton exporters in a dilemma.
After falling for several months, Indian cotton yarn prices have risen for 3 consecutive weeks. Domestic cotton yarn prices have increased by 1% in the past week and 3.4% in the past 3 weeks.
Cotton prices continue to fall, cotton yarn prices rise, and yarn mill profits begin to improve. However, the quality of Indian new cotton this year is very poor, and CCI has refused to purchase new cotton that exceeds the standard, so cotton prices have fallen below the MSP.
Indian cotton export quotations have also begun to fall, but because the loading period is not guaranteed, China does not like Indian cotton. At the same time, Indian yarn exports to China are also problematic, and the recent rise in yarn prices has made the situation worse. The free trade agreement between Pakistan and China has made Indian cotton yarn almost uncompetitive.
