CAI Continues To Cut Cotton Production And India Cotton Prices Will Soon Rise

At the annual meeting of the India Cotton Association (CAI) held in March 7th, CAI estimated that cotton production in India was 32 million 800 thousand bales (170 kg) in 2018/19, a decrease of 200 thousand packets from last month, a decrease of 3 million 700 thousand packets from the same period last year.

According to CAI, the main reason for the reduction of cotton production is the lack of rainfall in the main cotton producing areas of India in 9-10 last year.

At present, some countries have removed unharvested cotton stems in advance to prevent the cotton bollworm disaster. There will be no fourth and fifth picking this year.

CAI expects cotton prices to rise in June due to a shortage of supply. It is recommended that textile mills begin to purchase. The end of this year's inventory is expected to be 1 million 700 thousand packs, down from last year.

The CAI annual meeting focused on the Sino US trade war, the global economic situation and the way to enhance the brand image of India cotton, and discussed the ways to improve the cotton yield per unit in India.

Extended reading:

On the 1-7 th of March 2018, the average price of the seven standard market spots in the United States was 68.17 cents / pound, up 1.17 cents / pound from the previous week, down 12.31 cents / pound compared with the same period last year.

In the week, the seven spot markets in the United States traded 100649 packages, totaling 767750 packages.

Domestic spot prices rose, cotton growers focused on commodity markets and Sino US trade negotiations, so as to decide on planting intentions this year.

Overseas enquiries in Texas are light, Indonesia, Taiwan, China and Vietnam demand the best. The western desert region has low price enquiries, Sino US trade disputes lead to slow inquiry and sales, foreign enquiries in San Yue Jin area are light, Pima cotton prices are stable, foreign enquiries are light, Pakistan and Turkey demand the best, Sino US trade disputes lead to slow inquiry and sales.

During the week, the domestic textile mill of the United States had an enquiry for the new grade 51-4-34 cotton shipped in 4-5 this year. It had an enquiry for the shipment of 51-4-34 in 2020, and the yarn demand was general.

US cotton export demand is general. Indonesia has a certain inquiry about the recent shipment of grade 31-3-36 green card cotton. Taiwan region of China has an inquiry for the latest shipment of 42-4-35 grade cotton.

Rainstorms and tornadoes in the southeastern United States did not damage the ginning plants and warehouses, but there were heavy rains and floods in the delta area. The field operations were interrupted, and the sowing in southern Texas was delayed due to the early rainfall. The rainfall in the southern part of the state was beneficial to the soil moisture in the central part of the country. Field operations in the western part of the state were broken off. The sowing work in the western desert region was active. Heavy rain in the San Yue Jin area, due to insufficient soil accumulated temperature, sowing was probably postponed from March 10th to the end of March. The Pima cotton had rainfall and the snow thickness in the mountainous area had reached the best level for many years. However, the wet and cold weather caused the Pima cotton planting to be postponed till the end of March.