For its part, the cotton market is “surviving” in a narrow price range with limited demand, despite the good level of exports published last week. Unsurprisingly, the biggest importer remains Pakistan, where a limited harvest is driving manufacturers to import cotton from all origins.
In Europe, the Greek harvest, in sharp decline, is finding takers in Turkey, though less readily than usual.
The Indian sub-continent is awaiting the Indian authorities' decision on whether or not to lift import taxes, as well as the new guaranteed selling price (GSP), so that the campaign can finally get underway throughout the region.
Meanwhile, Brazilian cotton continues to sell well on all markets, particularly in China and Vietnam.
In this highly competitive environment, it's difficult for African cottons to make a place for themselves. Indeed, the increase in cost prices, driven by a guaranteed price to growers set six months ago, is preventing African cottons from being marketed at satisfactory levels. Although the bases for African cottons are historically high, this is not enough to make the sector competitive.
The ICE, for its part, continues to evolve in a very narrow range, suggesting a sharp movement in the weeks to come, without yet knowing its direction. For our part, we expect the market to settle down as we await the next figures on planted areas.
Source: Mambo