New York futures moved higher this week, with December advancing 209 points to close at 63.94 cents/lb, while March gained 174 points to close at 62.27 cents/lb.
“After posting a low of 60.83 cents two weeks ago, nearby supply worries have since lifted the December contract back into the mid-60s,” the latest Plexus cotton market report reveals.
Spec short covering was the main driver behind the strength in December this week, after an improving chart picture triggered a number of buy stops
Almost zero forward deals with exporters seen this season as China reduced its imports from India, record-high acreage as well as cotton production, along with dull demand from mills has resulted in fall in cotton prices and it will be the lowest in last one year.
Cotton prices have fallen to the lowest levels in the current cotton year (October 2013-September 2014), at Rs 33,000-34,000 a candy (356 kg). Demand for cotton in terms of exports will also be low.
According to sources, going f