Cotton prices recovered last week after the sharp fall of early September. The end of state reserve sales in China removes a source of cheap supply and lifted Zhengzhou futures. New crop arrivals in Xinjiang, India and the United States will now cap any rebound. Prices may therefore stabilize over the coming weeks, supported by firm global fundamentals.

Cotton prices fell again last week on all markets. New York futures lost more than 5% after the US Federal Reserve raised interest rates and export sales disappointed. The decline spread to the A Index and to import offers at Chinese ports. Domestic prices also moved lower in Asia, where the new crop is arriving and imported cotton is becoming cheaper.
This report tracks cotton prices in international markets and in China, India, Pakistan, Turkey and Brazil, with local and global benchmarks including the Cotlook A Index. It also covers cotton futures on the New York and Zhengzhou exchanges and China's import prices by country of origin.