Turkey, Vietnam buyers cancel orders as cotton prices rise

The rise in cotton prices in recent days has led to diminished demand and buyers, majorly from Turkey and Vietnam, have cancelled orders for about 35,000 bales as per the US Government data for the week ending March 6, 2014, according to a Reuters report.

 

Turkey, which is the largest buyer of cotton from the US during the ongoing season, cancelled orders for at least 19,300 bales, the highest number of order cancellation since October last year, the report said.

 

According to the data from the US Department of Agriculture (USDA), Turkey is expected to buy around 1.86 million running bales of cotton during the ongoing season August-July 2013-14.

 

Meanwhile, Vietnamese buyers cancelled orders for 11,700 bales as per the data till March 6, 2014. The statistics also showed cancellation of orders from Egypt, India and Italy.

 

Late last year, Turkey became the largest buyer of the US cotton, overtaking China, which started withdrawing its cotton buying and storage policy.

 

Vietnam ranks fourth in terms of US cotton customers, next only to Turkey, China and Mexico.

 

One of the reasons for the increase in prices of cotton in the US is decreased harvest this season, the lowest in the last four years.