The unstable China-US relationship suppressed market confidence for cotton yarn in December. For Vietnamese cotton yarn, orders were at a large amount (China’s orders are centered on Vietnamese cotton yarn) and ordering price was volatile. In December, Vietnamese cotton yarn mills are heavily burdened. Some made efforts to develop other markets and succeeded. Thus exports to China may fall. If Chinese buyers keep ordering negatively, the price of forward Vietnamese cotton yarn may further drop.

For Indian cotton yarn, the forward price fluctuated in a narrow range and the transactions were scarce. Indian exporters did not find great opportunities to export. Indian cotton prices remained weak. Cotton yarn consumption has improved, pushing up cotton yarn prices, so exporters do not have room to operate. In the short run, forward Indian cotton yarn prices will be well supported.

For Pakistani cotton yarn, forward prices in December tended from stable to weak. Calculated on the basis of export price to China, Pakistan cotton yarn mills suffered significant losses, but with an increase in cotton yarn consumption in Pakistan’s local market, mills can maintain production. In addition, the Pakistani rupee sustained depreciation, providing downward room for the export price of Pakistan cotton yarn. Due to limited stocks in China ports, regional transactions continued and traders ordered cautiously amid a bearish market concerning about the further decline of forward cotton yarn prices.