Demand weakened in China led to lower prices of Indian cotton

Due to the reduction of orders from India, the largest importer of Indian cotton, and India's domestic cotton supply is bound to reach its peak, Indian buyers are still waiting for a wait because of weak yarn demand. Therefore, the price of Indian cotton may fall significantly in the next two months.

---- India's domestic cotton supply will reach the peak in early December - Europe and the US economic recession hit China's textile exports - India's cotton prices may fall by 14%, fell to 32,000 rupees / candy

Indian cotton prices are now at Rs 37,200 (approximately US$ 710)/candy (356 kg) or Rp 104,000 (approximately US$ 2,000)/ton, and by December prices must fall by 14-15% to Rs 32,000/candy. Then stay at this level.

Since March hit a record high of 61,700 rupees/candy, cotton prices have fallen by nearly 40% so far.

China buys more than half of India’s cotton exports and is the world’s largest cotton importer. In recent months, China has imported nearly 1 million tons of cotton from overseas, supplementing national reserves, which is much higher than market expectations.

However, India has not been able to grab a share of this wave of buying because the time for Indian cotton to enter the market has been postponed. Now that China has started to purchase domestic cotton from September 2011, India’s chances are even smaller.

Insiders pointed out that if China still holds a wait-and-see attitude towards the market, then (India) domestic prices will fall.

This year, India will harvest 35.6 million bales of cotton, a record high.

Indian cotton will enter the peak of shipment from the first week of December to mid-January and then slowly decrease.

In September and October, the abnormal rainfall in India, the slow progress of cotton picking, delayed the arrival of cotton in the Indian market.

As of November 20, about 3.5 million bales (170 kg) of cotton entered the Indian spot market, a decrease of about 25% from the same period last year.

The delay in the arrival of cotton in India has made it possible for Brazil and Australia to open their doors to China.

This year, China surpassed South Korea and Indonesia to become the largest buyer of Brazilian cotton. From January to September, it imported 104,000 tons, which doubled from the same period of last year.

This month, China also purchased about 996,100 bales of cotton, which became the largest cotton buyer in the United States in eight years.