The US cotton average price increased by 26% to reach USc 85.3/lb in H1-2021, compared to the previous six-month average (Jun-Dec ‘20) as old crop supplies tightened, and concerns about the new US cotton crop quality rose. Concerns were heightened regarding the growth of the 2021/22 crop with low rainfall in Texas, the largest US cotton growing region, in the early months of 2021.
Meanwhile, the average price of Indian cotton increased by 21% (INR 129.7/kg) in the past six months (Jan-Jun ‘21), compared to the previous six-month average, due to accelerated procurement from the Cotton Corporation of India (CCI) and resuming mill use demand. Also, Indian cotton prices have been competitive compared to those in the US and Brazil. This led to an increase in Indian cotton exports in H1 2021, thus supporting prices.
From economical to political, all the factors impacting the cotton market have been analysed to provide a market outlook for the next six months. Mintec’s market outlooks (schedule) provide insights on factors shaping the market dynamics of various commodities, providing the opportunity for market participants to stay ahead of factors that will impact procurement decisions. Please visit our Mintec Analytics platform to find out more.