Cotton exports jumps as domestic prices recede to sub-80 cents
Cotton exports surged in February with shipment of 10.6 lakh bales (170 kg each) as against 7.3 lakh bales exported a year ago. The increase this February is largely due to fall in domestic prices and surge in exports to Bangladesh. Also, some shipment that were held back in January for no explicit reason, have been shipped this month.
Thus, during the first five months of 2017-18 cotton marketing year, cotton exports aggregated 44.1 lakh bales as against 43.3 lakh bales in the corresponding months of previous marketing year.
The export (FOB) price realization averaged INR117 a kg or US cents 84.42 per pound in February as against the Cotlook Index ‘A’ at 88.6 per pound and spot Shankar-6 at US cents 79.4 per pound. Spot prices have declined from an average of US cents 82.7 in January to below US cents 80 per pound mark, large due to higher arrivals and the peak marketing season coming to close. Comparatively, Indian cotton was apparently cheaper then global spot benchmark.
Over the past 12 months, domestic prices remained above US cents 80 per pound levels, touching a high of US cents 85 per pound in April 2017. They had hovered below US cents 80 in the first three months of the current marketing season, but a crop loss report in Maharashtra and Gujarat pushed them back to above US cents 80 in January.
About the report: Textile Beacon’s Fibre to Yarn Trade Statistics – India covers shipment data on all kinds of fibres, spun yarns and filament yarns from Indian ports. It covers natural and manmade fibres, spun yarns of cotton, viscose, polyester, acrylic, and their blends, filament yarns of polyester, nylon, polypropylene and viscose. Three key variables, namely – Volume, value and unit price realization, are analysed by counts and markets.
