In the past week, Indian cotton yarn prices continued to rise, yarn mill profit margins improved, and domestic cotton prices rose due to CCI’s large-scale acquisitions.
That week, India’s 30-count knitted yarn rose by 4%, and 40-count combed yarn rose by 2.9%. Within 3 months, cotton yarn prices in India have increased by 13-20%. The reason for the rebound in cotton yarn prices is the sharp increase in cotton prices, which increased by 13.9% in 3 months.
At the same time, CCI’s large-scale purchases increased cotton prices, and cotton farmers took advantage of the high prices to actively sell, resulting in the volume of new cotton on the market reaching a record high. At the same time, CCI also sells cotton in stock to textile mills and foreign buyers at low prices.
Recently, India has signed large cotton export orders with China and Bangladesh, and the decline in the exchange rate of the rupee against the yuan has stimulated Chinese demand. India’s cotton exports are likely to jump 40% to 7 million bales in 2020/21, the highest level in seven years, as the rupee’s depreciation and rising global prices allow exporters to seal contracts. </p
