The strong demand for yarn from China has been driving cotton demand and holding domestic prices steady. Demand for yarn is expected to touch 900-1,000 million kg (mkg) against 700 mkg shipped last year, said Joshi.
With expectation of higher demand for yarn, cotton exports may plunge to 80 lb (130 lb). CAB had estimated an export of 70 lb in its last meeting. Till December, registration for exports has touched 35 lb, of which 24 lb have already been despatched.
Of the total cotton exports, China accounted for 30 per cent, while Bangladesh’s share slipped by 6-8 per cent. This may be due to slowdown of demand in Bangladesh or they may be buying from other countries, he said.
China has been buying cotton despite holding an inventory of 10 million tonnes, enough to meet its entire demand for a year. The millers in China may be offloading their old inventory and buying fresh stock in the market, he said.
The global cotton supply is estimated at 40.01 million tonnes (mt) with a production of 25.97 mt (of 5.88 lakh bales) and opening stock of 14.04 mt. Consumption and exports are estimated at 23.53 mt and 7.98 mt, leaving a closing stock of 16.48 mt. (Source: The Hindu Businessline)