While most benchmark prices moved higher over the past month, volatility was a feature of cotton futures markets in February 2017, Cotton Incorporated said in its latest Monthly Economic Letter. The A Index rose a couple of cents over the past month. In early February, A Index values were near 85 cents/lb. The most recent values have been near 87 cents/lb.
The May NY futures contract was volatile over the past month. Values dropped several cents/lb near the middle of February, but made up for those losses and climbed above the values posted mid-February in several spurts in early March. The latest values have been near 78 cents/lb, the report ‘Cotton Market Fundamentals & Price Outlook’ said tracking recent price movements.
However, in both international and domestic terms, the China Cotton (CC) Index has been comparably stable, holding to levels around 16,000 yuan/ton or 105 cents/lb. The stability of CC Index has contrasted with the volatility in Chinese futures. Values for the May ZCE futures contract gained nearly 500 yuan/ton early in the week of March 6 and reached levels just above 16,400 yuan/ton before collapsing later in the week and dropping to levels near 15,600 yuan/ton.
Meanwhile, prices for Indian Shankar-6 variety increased from values equivalent to 80 cents/lb in early February to those near 83 cents/lb in the latest trading. In domestic terms, values rose from Rs 42,000/maund to Rs 43,400/maund. Pakistani prices were mostly stable. In international terms, values held near 78 cents/lb. In domestic terms, values held near 6,700 PKR/candy.
