Cotton prices have stayed at their currently low level in the past week, over a lack of demand from spinners who are primarily trying to reduce their stocks, also anticipating prices to stay very weak in the coming season. Global cotton stocks at the end of 2019-20 have been raised by the US Department of Agriculture (USDA) in its latest monthly report.
Cotton prices have failed to rebound in the last week in New York, being pressured by a stronger dollar and a similar weakness on other commodity markets.
US exports sales have been very low in the latest week under review, the US Department of Agriculture (USDA) has reported.
Most spinning mills are now well covered, waiting for the next season before replenishing their stocks.
With the global cotton production still expected to rise 5.4% in 2019-20 and cotton use only up 2.4% in the meantime, there is no reason to hurry.
In addition, demand is relatively depressed for cotton or poly-cotton yarns in a series of textile countries.
In China, yarn prices are in free fall with certain plants no more receiving orders.
The recent drop of polyester prices is further pressuring cotton prices at the same time.
In its just released monthly forecast, the USDA has raised ending stocks in 2019-20 with the key stock-to-use ration climbing from 60.1% to 61.67%.
As a result, there is no reason to expect that cotton prices could rebound in the coming weeks.
Source: Emergingtextiles
