Cotton

[rakeshmalik]

Centre to impose restrictions on export of cotton
Madurai | Monday, Mar 24 2008 IST

The Centre will soon announce its plans to impose restrictions on export of cotton to help Indian weavers, Union Minister of State for Textiles E V K S Elangovan said.

Talking to newspersons here today, he said the Government was aware of the crisis faced by weavers due to the steep increase in cotton price and non-availability of cotton due to uncontrolled exports. The Government had planned to take measures to help weavers get sufficient quantity of cotton and boost exports of value added cotton goods, he added.

He said plans were afoot to provide yarn to weavers at affordable price. On the problems faced by the textile industry over the Indian currency getting stronger against the US Dollar, he said, ''it is only one of the problems.'' The main reason for the problems in the textile sector in Tamil Nadu was the power cuts. Textile mill owners in Karur and Tiruppur had conveyed this to the Government, he said.

He said the Government had also announced an insurance policy for three lakh weavers.

He further said another textile park would come up in Madurai at a cost of Rs 70 crore

 

[rakeshmalik]

India may impose restrictions on cotton exports: Report
Mumbai - The Central government may impose restrictions on cotton exports to ensure adequate availability for Indian weavers and to boost exports of value-added cotton goods.

25/03 10:38 Cotton futures gain a little

25/03 09:04 ICE cotton ends up on funds buying

25/03 08:23 Kapas NCDEX April

25/03 07:45 Kapas Khali NCDEX MAY

 

[rakeshmalik]

Centre mulls to curb cotton exports, says minister
Commodities Bureau
Posted online: Monday , March 24, 2008 at 2322 hrs

Chennai, Mar 24 The Union government may regulate the export of cotton to help the textile mills in the country. An indication to this effect was given by Union minister of state for textiles EVK S Elangovan in Madurai on Monday.

He said that the government was planning "to impose restrictions on export of cotton to help Indian weavers get sufficient quantity and to boost exports of value-added cotton goods." The government was worried that the textile sector has been hit hard, despite increase in cotton production, he said.

The minister said that the government was aware that weavers had been affected by the steep increase in cotton prices and non-availability of cotton due to uncontrolled exports.

Organisations like the Coimbatore-based Southern India Mills Association (SIMA) and the South India Small Spinners Association (SISSPA) have been making fervent pleas to the government to ban export of cotton to control soaring prices and make cotton available to the spinning mills. Though Tamil Nadu produces almost 60% of the yarn in the country, cotton production in the state is only a fraction of the demand. Tamil Nadu mills buy cotton from centres in Gujarat, Punjab and Haryana.

They are forced to compete with the buyers from Pakistan, China and Thailand, who have offices and godowns here. Market sources say the foreign buyers are holding huge stocks of over 1.2 million bales of cotton leading to speculative price trends. Even the December 2008 prices are quoted at around Rs 23,000 a quintal. "The free market for cotton export may force the Indian mills to buy from foreign traders operating in the country," they said. Mills in Tamil Nadu have welcomed the minister's statement that the Centre was planning to curb cotton exports.

 

[rakeshmalik]

Cotton trading fails to pick up

By Our Staff Reporter

KARACHI, March 24: Trading activity on the cotton market failed to pick up as spinners remained conspicuous by their absence leaving ginners guessing about their disinterestedness.

The interesting feature of the cotton trade was that the private sector exporters had physically shipped 20,000 bales of low quality lint to India out of the total exports of 0.139m bales up to March 15, said a leading exporter.

Pakistan’s cotton trade is free both for import and export without duty in an effort to ensure competitive supplies to the textile sector to maintain steady outflow of textiles, he added.

But cotton analysts said after having imported large quantities of lint from various sources to make up the local shortage, spinners and mills are sitting pretty comfortable on their stocks, keeping ginners at their toes all the time.

Bulk of the lint, about 2m bales plus, from India during the last two months has changed supply and demand outlook putting pressure on the ginners to lower their asking prices, they added.

“Spinners are not worried over the rebound staged by the New York cotton futures after having fallen sharply lower by 16 cents per lb during the last couple of sessions as most of them were already close to their annual consumption demand,” market sources said.

Incidentally, both the ruling May and July contracts did not breach the barrier of 70 cents per lb and the Monday’s rebound reflects that speculative forces are again inclined to push them further higher, they added.

Official spot rates, therefore, did not show any change and were firmly held at the last level of Rs3,300 per maund.

Mill ready off-take was on the lower side amounting to about 3,000 bales, all from the Sindh ginneries as under: 1,200 bales, Shahdadpur at Rs3,400 and 1,000 bales, Khairpur at Rs3,350.

 

[rakeshmalik]

Commodity Online
COIMBATORE: Cotton lint prices maintained a steady trend, in line with global price movements, which were high and volatile, during the first fortnight of the month.

South India Cotton Association (SICA) said that though overall daily pace of arrivals have come down in volume, the total arrivals, as on March 15, however were more than last season, registering 260.10 lakh bales, as against 225.65 lakh bales last year.

Prices were steady to easy in Punjab, Haryana and Rajasthan, where Bengal Deshi variety ruled at Rs 1780 to Rs 1900 and J-34 Saw ginned Rs 2070 to Rs 2260 per maund spot.

With Shankar-6 being quoted at Rs 21,000 to Rs 22,500 and V797 at Rs 17,000 to Rs 1 7,300 per candy spot, prices remained steady to easy in Gujarat, while in Madhya Pradesh it saw a steady trend, as MECH-1/h4 ruled at Rs 21,400 to Rs 22,100 per candy spot.

Prices ranged between Rs 20,900 and Rs 22,100 per candy spot for 28-30mm staple in Maharashtra.

In Andhra Pradesh, the prices continued to be on a steady trend, as MCU 5 ruled at Rs 21,300 to Rs 22,400, while DCH32 quoted between Rs 30,200 and Rs 30,900 per candy spot. Prices were steady to easy in Tamil Nadu, SICA said.

 

[rakeshmalik]

Cotton futures surrender gains
Mumbai - After accumulating sharp gains yesterday, cotton futures were trading up marginally as speculative buying slowed down during early hours of session on both the domestic exchanges Tuesday. W...

25/03 16:38 Cotton lint moves up Haryana

25/03 16:35 Cotton lint firm in west India

25/03 09:04 ICE cotton ends up on funds buying

25/03 11:11 India may impose restrictions on cotton ...

 

[rakeshmalik]

CNCE slightly lower on balance (3:30 GMT 26th Mar, 2008)
China Cotton Index (3:14 GMT 26th Mar, 2008)
Activity drops on The Seam, prices mixed (21:39 GMT 25th Mar, 2008)
Cotton futures settle sharply higher on New York close (19:20 GMT 25th Mar, 2008)
Cotton futures hold gains in New York trade (16:32 GMT 25th Mar, 2008)
Warm, windy conditions forecast from West Texas to the Southeast (16:05 GMT 25th Mar, 2008)
Summit to discuss China’s cotton market (16:03 GMT 25th Mar, 2008)
ICE Futures US alters trading hours for No.2 contract (14:17 GMT 25th Mar, 2008)
Prices steady in Pakistan (12:29 GMT 25th Mar, 2008)
Slow start to sowing evident in Pakistan (12:23 GMT 25th Mar, 2008)
New York futures rule firmer (12:16 GMT 25th Mar, 2008)

 

[rakeshmalik]

India-Japan to sign currency swap agreement

New Delhi, March 27: The government Thursday approved a proposed currency swap agreement with Japan to exchange USD 3 billion to safeguard the economy from any future balance of payment of crisis.

The government will authorise the reserve bank to sign a currency swap agreement with Bank of Japan to exchange USD 3 billion against rupee or yen for mitigating short term balance of payment problem.

"It is an additional arrangement outside IMF (International Monetary Fund) to meet for short term liquidity in USD during a balance of payment crisis," an official spokesperson told reporters after the cabinet meeting.

In August 2007, during the visit of then Japanese Prime Minister Shinzo Abe to New Delhi, India and Japan had agreed to sign a bilateral agreement on currency swap, which will add to a regional network of such accords designed to provide emergency financial liquidity to either or both parties in times of currency market or other turbulence.

Sources said with around USD 300 billion Forex reserves, there is distinct possibility that provisions of proposed agreement would be ever operationalised in near future, but it will provide a cushion to the government to face any financial crisis like the one happened in eastern countries in late 90s.

As per the proposed agreement, India and Japan will help each other if their currencies were to come under the attack of speculators.

Japan has swap deals with other Asian countries like Thailand, Korea, China, Malaysia, Philippines, Singapore and Indonesia. In some cases, the swap is one way, while in some others it is two-way.

 

[rakeshmalik]

Rice prices decline on hike in export prices

New Delhi, Mar 28, 2008 (Asia Pulse Data Source via COMTEX) -- Rice prices tumbled in the range of Rs 25-50 per quintal on the wholesale grain market today due to restricted buying amid increased supply after the Government's decision to raise export prices of rice.

Trading sentiment turned weak after the Central Government's decision to hike export prices of non-basmati rice prices to curb rising inflation.

Rice permal raw declined by Rs 25 at Rs 1,400-1,450, rice wand by Rs 50 at Rs 1,600-1,650 and rice sela by Rs 50 at Rs 2,100-2,200 per quintal respectively.

On the other hand, wheat dara prices improved by Rs 10 on fresh buying by rolling flour mills and atta chakkies mills.

Wheat dara rose from Rs 1,120-1,125 to Rs 1,130-1,135 a quintal and chakki atta traded at Rs 1,128-1,130 from Rs 1,118-1,125 per 90 kg on better offtake.

Rolling flour mills prices traded up at Rs 1,125-1,128 a instead of Rs 1,115-1,120 a 90 kilo bag on fresh buying support.

Following are today's quotations per quintal (in Rs): wheat MP (deshi) 1350-1600, wheat dara (for mills) 1130-1135, chakki atta (delivery) 1128-1130, Chakki atta Rajdhani (10 kgs) 145, shakti bhog (10 kgs) 155, roller flour mill 1125-1128, maida 1215-1240 (90 kilos) and sooji 1240-1275 (90 kgs).

Rice basmati (lal quila) 7000, Shri Lal Mahal 7000, Basmati common 6700-6900, Permal raw 1400-1450, permal wand 1600-1650, sela 2100-2200 and rice IR-8 1250-1325, Bajra 650-675, Jowar yellow 675-700, white 1250-1300, Maize 800-825 Barley (UP) 1170-1185 and Rajasthan 1180-1185.

 

[rakeshmalik]

Wheat, oils & pulses likely to get cheaper in a global village
29 Mar, 2008, 0140 hrs IST............................

NEW DELHI: For India, the crash in global commodity prices comes as an answer to a prayer. Import of wheat, cooking oil and pulses are now likely to be cheaper as speculators and large funds exit positions in New York and Chicago over the last fortnight.

The best part is that those who just joined the party and bought high have been scalded and probably won’t be returning anytime soon. The liquidity crisis in the financial markets will also now ensure that the punters do not return soon enough.

Commodity markets were the first to see a rush to the exit door after the equity market meltdown because of its highly liquid nature. Demand for margins and mark-to-market in equities forced the large punters to encash their positions and leave commodities virtually overnight.

“The markets went into a free fall when hedge funds exited the market because they had artificially raised commodity prices. There was no support from the physical market for those prices. Once the futures prices see a correction and are better aligned to physical fundamentals, offtake in the markets will resume,” a market watcher said.

However, the government is not leaving anything to chance. Rice exports have been further disincentivised by raising the minimum export price of non-basmati to $1,000 per tonne and removal of DEPB credit to non-basmati contracts.

Export of edible oils have been banned to improve local supply. Options will be placed in Chicago for wheat import later in the year.

Food prices have been spiralling out of control. There has been a 20% jump in domestic rice and tur prices in a year. Mustard oil has gone up by more than half while vanaspati — the mainstay of food processors and restaurants — is up 40%. Even sugar prices have increased 6%. This is ironical because the consumer is paying more for sugar while the government is paying sugar mills extra cash for holding on to sugar stocks.

Meanwhile, a quick look at the CFTC’s March 18 commitment of traders report shows that both non-commercial traders (or, speculators) and index funds are reducing their total positions rapidly. The biggest cuts are in corn and wheat, where those with long positions have been caught on the wrong foot.

In fact, index fund traders are virtually the only ones left with large long positions in the wheat market, mainly due to their model of trading. Commercial traders are going heavily short in wheat, i.e., they are betting on commodity prices declining further in future. However, opinion on wheat prices appears to be sharply divided among wheat punters. Their long and short positions were equal on CBoT this week.

The prices of wheat, soya bean oil and corn in the world markets have come off last year peaks now that easy money has exited commodity markets. Wheat dipped below the $10-bushel mark for the first time in almost a year. That has made it easier for physical traders and buyers to once again enter the commodity markets.

So, the subsequent price increases occurring this week in wheat and soya bean oil are more due to physical demand-supply fundamentals rather than speculative activity.

Meanwhile, the CME group announced another hike in margin requirements for corn, soybeans and soyaoil, effective after the close of business on March 27. For corn, the initial margin will go to $2,025, up from $1,350; for soyabeans, the initial margin will be $4,388, up from $3,375.