In the past week, Indian cotton prices have stabilized, but yarn prices have continued to fall, with 30 pure cotton yarns falling 6-7% in 3 months. 100% viscose yarn fell 2.4% in a week and nearly 6% within four weeks. The price of polyester viscose yarn stabilized.
In April this year, India's cotton yarn exports dropped sharply. In addition to the epidemic, Indian cotton yarn exports have begun to shift from China to Bangladesh and Vietnam in recent years. At the same time, Indian cotton exports to Bangladesh are also expected to increase. Recently, CCI has announced that it will start exporting cotton stocks at low prices.
As India's cotton production is expected to be high this year, Indian cotton prices may weaken in the future. According to the forecast of the Indian Cotton Association, due to the increase in production and the decrease in consumption, India’s cotton stocks have risen to a new high in the past five years. The latest statistics show that the current cotton planting area in India has increased by 22% year-on-year, and good monsoon rains will increase production.
As of July 24, the Indian monsoon rainfall in 2020 is 6% higher than the long-term average, the highest in the past 6 years. The planting area of autumn crops exceeded 80 million hectares, 75% of the plan was completed, an increase of 18.5% year-on-year.
From July 1 to 22, nearly 80% of India’s 36 regions had more than normal rainfall, 18 regions were the same as previous years, and only 7 regions had less rainfall. India's August rains are still critical, and the current autumn crops are expected to have a good harvest.
Indian yarn prices continue to
