Australian Wool Innovation Limited (AWI) conveyed that the cotton prices saw a modest upturn during the month of January, largely due to an expected firming of demand from China, and aided by higher prices in India and an influx of buying interest on the New York Futures market.
Prices peaked during the first week of February before drifting marginally downwards before some rally towards the end of the month.
This seems to verify Cotton Outlook's suggestion that demand growth in many markets is beginning to look lacklustre.
Among the many contributing factors to this lacklustre demand were the Chinese New Year holiday; the general lack of an official announcement regarding the additional Chinese import quotas; and the ever-expanding volume of "consignment" cotton exported to China in recent months (significant quantities that merchants have shipped to China without a sales contract on the expectation they will be stored and sold upon arrival).
Australian Wool Innovation Limited
marketing@alchempro.com
