Most global cotton benchmark prices increased over past month

The A Index rose from 133 to 154 cents per lb over the past month.

Open interest is shifting out of the May NY/ICE futures contract and into July. Prices for both futures surged in the second half of March but retreated slightly in more recent trading. Both contracts were trading below 120 cents per lb in the first half of March. Values for May futures climbed to levels approaching 140 cents per lb in early April but have since eased to 133 cents per lb. Values for the July contract climbed as high as 136 cents per lb but have since eased back to 131 cents per lb, according to the report by Cotton Incorporated.

Prices for the December 2022 NY/ICE contract, which reflect expectations after the next harvest (2022-23 crop year), increased from 106 to 114 cents per lb. Even with the gains, the December 2022 contract continues to trade at a significant discount (-16 cents per lb) relative to prices for contracts with delivery in the 2021-22 crop year (e.g., the July 2022 contract).

The China Cotton Index (CC 3128B) was comparatively stable. In international terms, values held near 163 cents per lb. In domestic terms, values generally traded near RMB22,800 per ton. The RMB weakened against the dollar, from RMB6.32 to RMB6.36 per USD.

Pakistani spot prices moved slightly lower, from 137 to 134 cents per lb. In domestic terms, prices traded between PKR20,000 and PKR20,500 per maund (37.32 kg). The PKR weakened against the USD, from PKR178 to PKR186 per USD.

ALCHEMPro News Desk (KD)