Currently, the domestic textile industry in Pakistan has fully recovered. Under the influence of the recovery of cotton prices, yarn prices have continued to rise in the past two weeks.

　　 With the increase in demand from downstream enterprises, cotton yarn prices in Pakistan have continued to rise in the past week. At present, textile factories and garment factories have reached full capacity. In July, textile and garment exports increased by 14.4% year-on-year, and textile exports rebounded prominently.

　　 Affected by this, the domestic and export prices of Pakistani yarn have risen by more than 2% in the past two weeks. Although the overall price is still far below the level of the same period last year, there is still potential for growth in the future.

　　 At the same time, Pakistani cotton prices continued to rise, and the price of imported US cotton rose to 72 cents/lb.

　　 At present, India’s domestic stock of cotton is being sold at low prices, and the profitability of spinning mills is beginning to improve. In 2020/21, India's cotton production is expected to increase significantly.

　　 In the week, market activities during Indian holidays were restricted, and cotton yarn prices were basically stable. Affected by the decrease in the amount of cotton on the market last year and the new cotton is far from being harvested, domestic cotton prices have maintained a strong momentum.

　　 Recently, Indian state-owned stocks were sold to domestic spinning mills and international cotton merchants at low prices. The total sales volume of CCI was no less than 4 million bales. Indian cotton production is expected to increase in 2020/21. USDA expects Indian cotton production to increase by 4.2% year-on-year and 15% within two years. The Indian Cotton Association has also just raised its output for 2019/20. Therefore, even if India's cotton exports increase, India's cotton ending stocks will continue to increase.