Cotton exports could hit 4-year high on price rally, weak rupee
India's 2017/18 cotton exports are likely to jump nearly 30 percent from the year before to a four-year high of 7.5 million bales, as climbing global prices and a weaker rupee boost overseas demand, the head of an industry body said recently.
Increased supply from India could drag on a rally in international prices for the commodity and would likely compete with shipments to Asia from exporters like the United States, Brazil and Australia.
"We can end the season with exports of 7.5 million bales," said Atul Ganatra, President of the Cotton Association of India (CAI), adding that higher international prices would drive up shipments.
The Country has exported 6.3 million bales so far in the marketing year that started on Oct. 1, he added. Each bale contains 170 kg of cotton.
India shipped 5.82 million bales of cotton overseas last marketing year, according to data compiled by the State-run Textile Commissioner's office.
ICE cotton futures hit four-year highs earlier this week on buying from Chinese hedge funds, amid expectations of an increase in exports from the United States after trade war fears with China receded. Pakistan, Bangladesh, China and Vietnam are the main buyers of Indian fibre.
Indian cotton is being offered around 84 to 86 cents per lb on a cost and freight basis (C&F) to buyers in Bangladesh and Vietnam, compared to over 92 cents from the United Sates and Brazil, said a Mumbai-based dealer with a global trading firm.
The South Asian Country usually imports long staple cotton from the United States and Egypt.