1. IMC-MCX.IPF Commodity Market Fundamentals Forum June 14, 2018. Mumbai
Keynote on ‘Global Cotton Market Fundamentals and Outlook’
G. Chandrashekhar

2. Global Cotton Market
In world production set to trail consumption; end-stocks to be drawn down to multi-year low
Supply concerns
Weather vagaries in USA, China and likely acreage loss in India
China to restart inventory building

3. World Cotton S & D (in million tons) (Source: ICAC)
Year Output Use Trade Stock
Cotlook * A Index (cnts/lb)

4. Fundamentals tightening
Demand robust amid strong global economic growth
Chinese entry to be disruptive (stock rebuilding cycle to start)
Will potential US-China trade friction help India ??

5. Tightening global and Indian fundamentals
India: Area may fall one ml ha due pest attack experience last season; Production target of 35.5 ml bales may not be achieved
Weak rupee to help boost export (are enterprising exporters under-pricing Indian cotton ?)
Price implication of fundamentals

6. Thank You
G. Chandrashekhar Economic Advisor, IMC Chamber of Commerce and Industry (Policy Commentator and Commodities Market Specialist; Member SEBI-CDAC)