About Cotton Lint: Cotton, a soft, fluffy staple fibre, is one of the most significant crops grown for commercial purpose across the world. Cotton Lint is one of the three primary products obtained via cotton production. It is the raw fibre which is pressed into bales at the cotton gin after extracting it from the plant. Around 100 kg seed cotton can produce 35 to 42 kg of cotton lint, which is widely utilised in textile industry.
Get the latest insights on price movement and trend analysis of Cotton Lint in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).
According to the World Bank’s Raw Material Prices report, cotton prices are expected to rise by 40% Y-O-Y in 2022. With the continuing supply chain disruptions and diminished production due to weather-related changes, prices for cotton lint soared worldwide.
In India, the cost of the commodity went from 75,000 INR/candy (356kg) in Jan 2022 to 1,15,000 INR/candy in May 2022, recording a total 53% rise in the price since Jan 2022. Lower domestic cotton production, higher demand and soaring international prices caused a liquidity crisis amongst the Indian manufacturers.
The South Indian Spinners Association have called for the complete closure of mills until the market prices are conducive to sustainable production. The new cotton season beginning in October is likely to bring some respite to the spinners pan India.
In China, the average price of cotton 3128B was recorded at around 21,267 RMB/MT. The price trends for cotton lint are flowing towards the lower side in the Chinese domestic arena due to the increased interest rates by the US, along with the heightened speculations of economic recessions. Amid the current market volatility, the downstream purchases were diminished, leading to lower prices.
The cost of the commodity is constantly decreasing in the US domestic arena. The lower production due to dry weather conditions and export restrictions led to this decrease. The price went from 157.54 USD/lb in May 2022 to 104.49 USD/lb in June 2022. The rising inflation and the worldwide uncertainty of recession have weakened the already muted domestic demand.
Brazilian cotton lint prices averaged 1.62-1.17 USD/kg or 1620.8 USD/MT during the said forecast period. The rise in international prices, appreciation of the US dollar against the Brazilian Real, and export parity have led to the increased price in the global market.
For the First Quarter of 2022
On March 9, the average price of China's cotton index 3128B was 22,727 RMB/MT, up 23 RMB/MT from the previous day. On the 21st, the domestic cotton price index 3128B averaged 22,783 RMB/MT, down 39 RMB/MT from the previous weekend. Downstream textile firms were working regularly, and there was some need for warehouse replenishment. Recently, Zheng cotton lint prices have corrected sharply, and yarn manufacturers have boosted their queries.
At the end of January, the spot price of cotton traded on the ICE Exchange was at roughly 1.30 USD/lb. As of March 4, the price was 1.20 USD/lb. Exports from the United States were expected at 13.8 million bales for the 2021 marketing year, which is 950,000 bales less than the USDA's February 2022 projection. While export sales from the United States have been quite high in the 2021 marketing year, weekly shipments lagged significantly below the five-year average, along with the interruptions and delays caused by transportation concerns.
Cotton lint prices continued to rise in Brazil in March as sellers maintained their bids, largely in response to the strong gains in future contracts at ICE futures. The CEPEA/ESALQ Index finished at 7.2585 BRL/lb on March 31, marking a new high for the CEPEA series, which began in 1996. In March, several processors were working with cotton that had been stockpiled and/or receiving merchandise previously acquired due to the month's pricing levels.
For the Fourth Quarter of 2021
In November, the Cotton Association of India predicted that the cotton exports in the country will drop by 38%. Cotton lint prices increased by 45% in the region as demand outstripped the supply. However, production was likely to rebound as consumer demand rebounded to pre-pandemic levels with the festive season near the corner as the country recovered from the coronavirus pandemic followed by a massive vaccination drive.
In New York, cotton futures increased by 3.3% in October and approached peak prices. The prices jumped to 2.59 USD/kg in October 2021. The US crop in Texas was affected adversely by the droughts and the exports dropped twofold in the previous month of September. The US is a major exporter of the commodity and accounts for 41% of the global cotton lint exports. However due to a poor crop turnout as a result of unfavorable weather conditions, the exports slumped which caused global deficits and increased its prices.
Cotton lint prices in Brazil continued to rise till November consecutively for 5 months, rising by 5.25% to 6.26 BRL/lb. The export values increased as farmers tried to keep up with the local and overseas demand.
For First, Second and Third Quarters of 2021
Cotton supplies in India were low as compared to the demand which contributed to the rise in its prices globally. The prices witnessed 10-year highs in 2021 as a result of a global supply deficit.
Cotton lint prices in Europe had been increasing since the beginning of the year 2021 with the prices crossing the 1USD/lb mark. The prices increased as a result of rise in demand from the apparel industry which was rapidly recovering as the economy reopened following massive vaccination drives. Rise in shipping prices were also a factor in the surge in its prices.
In New York, cotton delivery gained 1.15 USD/lb in March 2021. The crop harvest was affected by rains in the regions of Florida, Georgia and Alabama which affected the quality. The demand had been rising in US in both regional and international markets for exports which drove up the prices as stockpiles tightened in the region.
In June 2021, the market in Brazil stayed strong and cotton lint prices remained firm as domestic demand boomed in the region. The prices were 23% higher than the export parity which meant that domestic market was more profitable than the export market. The cotton index reported a price of 4.9 BRL/lb. in June 2021.
For the Year 2020
In November 2020, cotton lint prices in India increased from 66 cents/lb to 69 cents/lb or 37,900 INR/candy to 40,200 INR/candy. The value of rupee had dropped against the US dollar causing inflation in the region. In China, the cotton index rose from 12,900 RMB/MT to 14,500 RMB/MT. China witnessed high price rise in the commodity’s market, as weather conditions posed challenges to the domestic crops which dwindled the availability in Chinese mills.
In Europe, the textile industry was heavily impacted by the coronavirus pandemic as demand for textiles dropped amid lockdowns. The unprecedented disruptions in the trade activities along with economic crisis, loss of employments, drop in demand from major consumers like China were the major contributors to the damage to textile industry. Major producing countries like Italy, Germany and France observed a decline in exports as well as local demand in 2020.
The US market was impacted by the coronavirus in the beginning of the year 2020. The New York cotton futures dipped to 53.6 cents/lb in March 2020, the lowest since 2009. The decrease in prices supported the halt in production. Cotton lint prices were also affected by the trade disputes with China which affected the demand. By November 2020, the US crop suffered due to the hurricanes which impacted the fiber quality in the region.
In Brazil, the cotton market profitability improved by the third quarter of 2020. In the beginning of the year, its futures had been traded at 69 cents/lb but they dropped later on following the pandemic which impacted the industry and caused the cotton lint prices to go down by 20 cents/lb by April end to 49 cents/lb. However, the prices recovered by October 2020, rising to 70 cents/lb.
Procurement Resource provides latest prices of Cotton Lint. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.
Procurement Resource provides prices of Cotton Lint for several regions around the globe, which are as follows:
Cotton Lint is produced through the ginning and pressing of raw cotton. In this process, extraneous materials like leaves, seeds, various organic materials, etc. are separated from cotton to produce Cotton Lint, which is then sold to spinning mills to make different yarn types.
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