Cotton

Status
Not open for further replies.

rakeshmalik

Well-Known Member
Cotton output down due to low produce in Punjab
ASMA RAZAQ
ISLAMABAD (March 23 2008): Cotton production has gone down by 11 percent this year, further threatening the already fragile textile industry that is unable to bear the burden of rapidly falling exports. Sources told Business Recorder that cotton production has reduced by 11 percent as compared to last year's output.

Moreover, it has been lowest when compared with last four years' data. "In 2004-05, we got a record 14.6 million bales, while in 2005-06 and 2006-07, the production was 13 million bales. But now, as our new crop has arrived in the market, it is apparent that we have achieved around 11.6 million bales, that is 1.2 million bales less than the revised target of 12.8 million bales and 1.4 million bales less than the crop obtained in 2006-07", sources said.

Less production in Punjab has been the main reason for not achieving the target, as its production is 13 percent less than last year's production in Punjab. The textile industry is suffering from high cost of production due to increase in import of cotton.

"Due to less production, the textile industrialists have already planned to import four million bales of long staple cotton from USA and Brazil while the orders to import four million bales of short and medium staple cotton from India have already been placed", sources said.

The factors contributing to the low yield of cotton were attacks of CLCV and mealy bug and shortage of the essential pesticides to save the crop from these attacks. When the government started importing pesticides, the prices in the domestic market cruised to double digits, which was not affordable for the small farmers of cotton. For example, they had to pay Rs 850-900 per 40 kg.

The government was aware of the fact before the sowing of the crop that CLCV, Burewala virus and mealy bug might attack the crop but no precautionary measures were taken to control these insects. The pesticides could be imported before the cultivation of the new crop but the government's negligence encouraged the hoarding mafia that resulted in poor crop production this year.

Secondly, the government had been claiming, for the last four years, that research was continuing in Nayab to bring forward a new variety of cotton that would be most resistant to attacks of mealy bug and CLCV but nothing has been obtained until now. The poor growers are being punished for nothing. If the situation remains the same, who will be there in 2008-09 to grow cotton--the farmers or the government?
 

rakeshmalik

Well-Known Member
Top Stories


Import duty cut on edible oil likely: Govt official
New Delhi - The Central government may reduce import duties on edible oils to tame surging inflation, a senior government official said Thursday. "After the cut, the effective duty on crude palm oil m...

20/03 16:09 Gold drops 10pc as dollar steadies

20/03 16:54 Edible oils end down; soy hits limit

20/03 16:50 NCDEX spices close in red zone

20/03 16:58 Cotton futures give up gains
 

rakeshmalik

Well-Known Member
Cotton prices influenced by world market trend remain under pressure
SHAFI AHMED SYED
KARACHI (March 24 2008): Cotton prices entered week with firmer trend, the buyers lifting available lots around Rs 3300 and Rs 3450 per maund though. The prices, heavily under world influence, came under pressure towards mid-week, prices however rule at the instance of the ginners. The spot rate opened at Rs 3300.

WORLD SCENARIO:

The NYCE trading is proving erratic with no direction, for two consecutive weeks hit by concern about the US and global economy. The last was the second week running when opening session was down 4.0 cent limit as funds began unloading commodity holding across the board. The players were going round saying 'outright decline is welcome but we hate uncertainty'. The new crop December cotton followed suit and fell 4.00 cents limit to 83.19 cents a pound. Commodities which were offering big support to cotton futures lumbled as investors sold assets ranging from oil to coffee.

However, there seemed no way out of the debacle as dollar down drift proved relentless, with harassed (Opec) oil producers throwing away any feeling that would give the economic power a sigh of relief. Except wheat, other commodities like corn and soyabeans showed moderate rallies aiding cotton trading little. Those who have been disappointed from share markets are turning to grains.

On Wednesday futures lost further support to close at a point players were expecting. On Thursday the NY cotton futures slide continued as the ICE Futures' May cotton contract ended 3 cents lower at 72.02 cents a lb, its lowest close since February 20. The range high stood at 76.22 cents. New-crop December cotton futures also fell the 3-cent limit to close at 79.34 cents. There was no business due to Good Friday holiday.

LOCAL TRADING:

The sellers have been blessing themselves for holding back whatever quantity they had left with them. The consumers have been reluctant buyers at the ruling prices between Rs 3250 and Rs 3590 per maund. The textile millers have practically settled down to business as a new government formation is within sight. The foreign lint prices have been falling and hence the Pakistani buyers can expect some space.

In the meantime the spot rate spilled into the week on Monday unchanged at Rs 3300, while phutti selling in both place at Rs 1200 and Rs 1600. The day saw nearly 14000 bales sold in the price range of Rs 3250 and Rs 3590.

On Tuesday consumers took rest from buying cotton which they think is a way to press ginners to relax prices. The ginners too were reluctant to open shops for sales. The reported delay in phutti arrival leaves much guess work on price factor-will it rise and by how much? The spot rate was maintained at Rs 3300.

The third session saw lean business ahead of Eid-e-Milad holiday on Friday. For the buyers it was usual pressure to relax vis-a-vis prices while sellers were banking basically on the local situation which shows shortfall in production. However, international prices are losing continuously to favour cotton buyers. Information has not been given lately how the Indian cotton exporters are behaving and whether supplies have begun. Some 3000 bales of cotton changed hands between Rs 3300 and Rs 3450. Spot was at Rs 3300 and phutti was selling at Rs 1200 and Rs 1600.

On Thursday low business was seen on the cotton market amid pre-holiday session as most of the buyers were on the sidelines mainly to see prices come to their psychological level. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 3300. Phutti prices in both Sindh and Punjab were also same at Rs 1200-1600, they said. In the ready business trading was seen between Rs 3300-3480.

According to the market sources, both mills and ginners were not interested in fresh deals in the absence of motivating factor. The deals were : 1000 bales from Sadiqabad sold at Rs 3480, 1200 from Dera Gazi Khan at Rs 3300 and 1100 bales from Sale Pat at Rs 3400.

Market opened on Saturday after a closed Friday. No change was reported in KCA; spot rates remaining at Rs3300. Similarly phutti prices stayed put at Rs 1200/1600 both in Sindh and Punjab. There was no activity in ready business.
 

rakeshmalik

Well-Known Member
Egyptian sales registrations slow (16:41 GMT 23rd Mar, 2008)
ZCE rallies (7:36 GMT 21st Mar, 2008)
Farmers prepares for cotton planting in China (7:21 GMT 21st Mar, 2008)
CNCE firm (3:40 GMT 21st Mar, 2008)
China Cotton Index (3:34 GMT 21st Mar, 2008)
Sales pick up on The Seam (21:03 GMT 20th Mar, 2008)
New York cotton futures settle lower (19:40 GMT 20th Mar, 2008)
Cotton futures modestly higher (16:31 GMT 20th Mar, 2008)
Open weather forecast for most of US cotton belt (15:31 GMT 20th Mar, 2008)
New York turns around (15:30 GMT 20th Mar, 2008)
New York continues to fall (13:53 GMT 20th Mar, 2008)
 

rakeshmalik

Well-Known Member
Cotton Production and Balance sheet
The Cotton Advisory Board, in its meeting held on 11th January 2008 has placed cotton production during 2007-08 cotton season at 310 lakh bales of 170 kgs each, as per State-wise details given below:
Area in lakh hectare/Production in lakh bales/Yield kgs per hectare

2007-08* 2006-07
State Area Production Yield Area Production Yield
Punjab 6.48 24.00 630 6.07 26.00 728
Haryana 4.78 16.00 569 5.30 16.00 513
Rajasthan 3.68 9.00 416 3.50 8.00 389
North Total 14.94 49.00 558 14.87 50.00 572
Gujarat 25.16 110.00 743 23.90 101.00 718
Maharashtra 31.91 60.00 320 30.70 52.00 288
Madhya Pradesh 6.62 21.00 539 6.39 18.00 479
Andhra Pradesh 10.96 43.00 667 9.72 35.00 612
Karnataka 3.71 8.00 367 3.75 6.00 272
Tamil Nadu 1.23 5.00 691 1.22 5.00 697
Others 0.77 2.00 442 0.87 1.00 195
Total 298.00 268.00
Loose Lint 12.00 12.00
Grand Total 95.30 310.00 553 91.42 280.00 521
*as per CAB dated 11th January 2008
 

rakeshmalik

Well-Known Member
Cotton Balance sheet
The Cotton Balance Sheet for 2007-08 vis-a-vis 2006-07 as drawn by Cotton Advisory Board vide its meeting dt.11-01-2008 as under:
Quantity in lakh bales of 170 kgs each
Item 2007-08 2006-07
SUPPLY
Opening stock 47.50 52.00
Crop size 310.00 280.00
Imports 6.50 5.53
TOTAL AVAILABILITY 364.00 337.53
DEMAND
Mill Consumption 207.00 194.89
Small-Mill consumption 23.00 21.26
Non-Mill Consumption 15.00 15.88
TOTAL CONSUMPTION 245.00 232.03
Exports 65.00 58.00
TOTAL DISAPPEARANCE 310.00 290.03
CARRY FORWARD 54.00 47.50
 

rakeshmalik

Well-Known Member
LATEST RAW COTTON ARRIVALS
(Position as on 20th (March 2008)
The per day arrivals are reported around 1,60,000 bales.

States 2007-08 2006-07
Quantity in lakh bales of 170 kgs

Punjab 20.40 22.80
Haryana 12.50 13.45
Rajasthan 8.60 7.75
North Total 41.50 44.00
Gujarat 90.00 76.50
Maharashtra 56.25 45.35
Madhya Pradesh 18.10 16.00
Central Total 164.35 137.85
Andhra Pradesh 39.75 29.75
Karnataka 6.00 4.65
Tamil Nadu 2.35 2.25
South Total 48.10 36.65
Others 1.40 1.00
Total 255.35 219.50
Plus Loose lint 10.55 11.00
Grand Total 265.90 230.50
 

rakeshmalik

Well-Known Member
Import through Wagha: short staple Indian cotton unable to meet supply orders
ASMA RAZAQ
ISLAMABAD (March 25 2008): The government's plan to import short staple cotton from India through Wagha seems unable to meet the supply orders because of meagre transportation resources, sources told Business Recorder here on Monday.

The government had decided to import 0.5 million bales of short staple cotton through land route from Wagha for the first time, but due to the high transport costs after increase in oil prices in international market, the Indian cotton traders are finding it difficult to deliver the orders in time.

According to the sources, the total consumption of cotton by the textile industry has reduced to 15.5 million bales whereas the local production is 11.6 million bales. "According to international standards, the weight of cotton per bale must be around 170 kilograms, but unfortunately, the weight of locally produced cotton is 150-155 kilograms per bale", sources disclosed.

Due to low requirement of cotton, to be consumed by the textile mills, the overall cotton import has reduced to four million bales. "Out of this, 2.5 million bales have arrived. Around 1.5 million bales, out of 2.5 million bales have been imported from India by sea, while the rest has been imported from the Middle East and Central Asian States", sources explained.

They emphasised that due to closure of 70 percent textile mills, the consumption of cotton by the local industrialists had reduced manifold. "Obviously that will hurt the textile exports as well", the sources said.

The country may face a reduction of 14 percent in its textile exports during the current fiscal as compared to 2006-07. It is noteworthy that the export orders of around 57.6 million dollars for readymade and knitwear garments have already been diverted from Pakistan to the regional competitors. Moreover, 300 spinning mills and weaving factories have already been closed.
 

rakeshmalik

Well-Known Member
Spot rate firm, a few deals reported on cotton market
RECORDER REPORT
KARACHI (March 25 2008): Spot rate maintained the weekend level on the cotton market on Monday as some needy mills made purchasing to meet the near terms requirement, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 3300. Phutti prices in both Sindh and Punjab were also same at Rs 1200-1600, they said.

Deals finalised between Rs 3350-3400 in process of trading, they added. The leading mills were conspicuous by their absence as they were anticipating that the ginners may adopt flexible attitude toward prices but it seems they would not do any deal in a hassle basle, wait for the proper time to keep themselves safe from future losses, brokers said.

In the meantime, Pakistan is exporting inferior types of cotton to India, on the other hand Pakistan is importing better quality to keep their business going, they said. If, the New York cotton futures showed improvement, the mills unwillingly make forward buying to meet the demand, they said. The following deals were reported: 1200 bales of cotton from Shahdadpur sold at Rs 3400 and 1000 from Khairpur at Rs 3350, they said.

===========================================================
The KCA Official Spot Rate for Local Dealings in Pak Rupees
-----------------------------------------------------------
FOR BASE GRADE 3 STAPLE LENGTH 1-1/32"
MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
===========================================================
Rate Ex-Gin Upcountry Spot Rate Ex-Karachi
for Price Sales Tax @ 15%
===========================================================
37.32 Kgs 3300.00 50 3350.00
Equivalent-------------------------------------------------
40 Kgs 3537.00 50 3587.00
===========================================================
 

rakeshmalik

Well-Known Member
Cotton

News Wire (ANW) for 03/24/08

- ICE Cotton Review: Ends Up;Funds Provide Boost On Tech Bounce
- Cotton Options Activity for trading on 3/24/08
- COMMODITIES-Soybeans lead narrow rebound in commodities
- NY cotton bounds to firm close on strong grains
- ANALYSIS-U.S. cotton trade bloodied in speculative run
- Cotton Options Activity for trading on 3/20/08
- Weekly world market price for upland cotton - USDA
- Rain Gives Southeast Break From Drought
- Texas Drought Tough on Farmers, Ranchers
- China's ZCE Cotton Futures Close for 03/24/08
 
Status
Not open for further replies.

Similar threads