Cotton

[rakeshmalik]

Cotton lint trades up in Gujarat, Mah
22 Jul 2008 4:23 pm

Mumbai - Cotton lint traded steady-to-higher at the spot market across western India Tuesday. While cotton lint traded unchanged in Madhya Pradesh, prices were quoted higher in Gujarat and Maharashtra. Prices have started feeling impact of the estimates of lower production due to insufficient rainfall in cotton-growing areas. Lower imports from other nations despite abolition of import duty are also supporting the prices.

At Kadi market in Gujarat, cotton lint S-6 A-grade was quoted at Rs 28,200-Rs 28,400/candy while average-grade traded at Rs 27,500-Rs 27,800/candy.

In Maharashtra, the 28MM cotton lint traded at Rs 27,700-Rs 28,200/candy; 29MM cotton lint traded at Rs 28,300-Rs 28,500/candy; while 30+MM cotton lint traded at Rs 28,500-Rs 28,800/candy; and 31+MM cotton lint traded at Rs 29,000-Rs 29,300/candy.

At Sendhwa market in Madhya Pradesh, the 28MM cotton lint traded at Rs 27,800-Rs 28,200/candy; 29/30MM cotton lint traded at Rs 28,300-Rs 28,800/candy; and 31MM cotton lint at Rs 28,700-Rs 29,000/candy; and DCH variety traded at RS 31,500-Rs 33,000/candy.

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Cotton lint rallies in north India
22 Jul 2008 4:17 pm

Abohar - Cotton lint continued to trade higher on support from consistent demand from millers at major markets across north India Tuesday. The region has almost finished all the stocks. Prices have started feeling impact of the estimates of lower production due to insufficient rainfall in cotton-growing areas. Lower imports from other nations despite abolition of import duty are also supporting the prices.

Meanwhile, Indian companies have reportedly purchased 10,000 cotton bales from Pakistan at 75 cents per pound for urgent delivery.

Across Punjab, cotton lint traded at Rs 2,860-Rs 2,865/maund at Budhaldha and Taapa; Rs 2,850-Rs 2,855/maund at Malot and Bathinda; Rs 2,845/maund at Abohar; and Rs 2,840/maund at Manasa.

Cotton lint traded at Rs 2,750-Rs 2,790/maund in Haryana and at Rs 2,700-Rs 2,725/maund in Rajasthan.

 

[rakeshmalik]

Cotton prices hit historical peak

KARACHI (July 23 2008): Cotton prices hit Rs 4,400 per maund historical peak on Tuesday in the domestic market on the back of slow arrival of Phutti and high cotton demand, besides expected shortfall in the cotton crop, traders said. They said the late sowing of cotton had delayed the Phutti arrival in the ginning factories, while the demand for raw cotton by the millers rapidly increasing across the country.

"Two deals have been finalised at the peak level price of Rs 4,400 per mound on Wednesday. In first deal, the GR Trading Company has sold 200 bales on ready delivery basis to a leading textile group at the ever highest rates," they said. In the second deal, the same company has bought 200 bales from a ginning factory located at Shahdadpur for August 1, 2008 delivery.

On Tuesday, some deals of cotton also finalised at Rs 4,250, ultimately the Karachi Cotton Association (KCA) raised the official spot rate by Rs 100 per maund to Rs 3,850 per maund.

"The slow supply of cotton and its high demand has pushed the cotton price at historical peak level," said Ghulam Rabbani, a leading trader. At present, he said that mills have demand for 40,000 bales per day, while supply stood at 7,500 bales per day, as across the country few ginning factories have stared operation.

While, textile mills are continuing finalising forward deals in anticipation of further rise in cotton prices in the near future due to the less the target cultivation of cotton crop this year, he added. Rabbani said that during the current year sowing of cotton crop across the country has declined by 8-10 percent due mainly to higher cost of inputs, substandard seed, expected heavy pest attack and expected water shortage in due time.

For the current fiscal year, the government has fixed a sowing target of some 3.2 million hectares land across the country, some 0.2 million higher than the last fiscal year. "However, as per provinces reports, presented in the meeting, overall cotton sowing across the country stood at 2.95 million hectares by the end of June 2008 against the target of 3.2 million hectares, about 0.25 million hectares less than the target of current fiscal year," he informed

He said, at present, cotton prices in the country are still lower than the world market, therefore, millers are taking full advantage of this opportunity. "The US cotton prices stood 74-80 cent per maund have a delivery period of over 45 days, while the Indian cotton prices stood at 80-84 cent per maund," said Rabbani.

He said that it is expected the cotton prices in the local market would touch Rs 4,500 per maund during next two weeks, while some rise in cotton spot rate is also expected.

Farmers have raised Phutti prices by Rs 100 per maund in the wake of short supply of the Phutti, he said, adding that after the current upsurge the prices of Phutti have reached another high level of Rs 2,100-2,225 per maund from Rs 2,000-2,125 per maund.He said that due to short supply of Phutti few ginning factories have started cotton production, as overall 78 factories including 68 in the Punjab and some 10 in Sindh has initiated operation.

 

[rakeshmalik]

Cotton export to India strongly criticised

KARACHI (July 23 2008): The President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Tanvir A. Sheikh, has strongly criticised the export of 10,000 cotton bales to India. He demanded that the government must immediately reverse this decision otherwise textile industry of Pakistan would face severe problems.

"In the last fiscal year, we observed decreasing trend in the textile sectors. One of the major reasons of this trend is shortage of raw cotton due to decline in production of raw cotton in the country.

If the government does not take this matter seriously then it will become very difficult for us to achieve export target of $22.1 billion this year. The permission to allow export of cotton to India is not at all in the interest of the country, as the local price of cotton due to this export decision has risen by Rs 100 to Rs 4,300 per maund," he said according to a press release.-PR

 

[rakeshmalik]

Central govt makes registration of cotton exports mandatory
23 Jul 2008 4:48 pm

New Delhi - After abolishing export incentives at the beginning of this month to control cotton exports, the Central government has now made it mandatory to register all the export contracts with immediate effect. The Foreign Trade Directorate has made this announcement in a notification, dated July 22, released here today.

The notification makes it clear that all shipments of cotton exports have to be compulsorily registered at the office of the Textile Commissioner. The notification, which came into effect with immediate effect, also states that the Customs Department will verify the registration details before clearing the cotton consignments.

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Cotton lint mixed in west India
23 Jul 2008 4:55 pm




Mumbai - Cotton lint traded steady-to-higher at the spot market across western India Wednesday. Prices are getting stronger as sowing of cotton is lagging in most parts of the country.

At Kadi market in Gujarat, cotton lint S-6 A-grade was quoted at Rs 28,200-Rs 28,500/candy while average-grade traded at Rs 27,500-Rs 27,800/candy.

In Maharashtra, the 28MM cotton lint traded at Rs 27,800-Rs 28,300/candy; 29MM cotton lint traded at Rs 28,400-Rs 28,600/candy; while 30+MM cotton lint traded at Rs 28,600-Rs 28,900/candy; and 31+MM cotton lint traded at Rs 29,100-Rs 29,500/candy.

At Sendhwa market in Madhya Pradesh, the 28MM cotton lint traded at Rs 27,800-Rs 28,200/candy; 29/30MM cotton lint traded at Rs 28,300-Rs 28,800/candy; and 31MM cotton lint at Rs 28,700-Rs 29,000/candy; and DCH variety traded at RS 31,500-Rs 33,000/candy.

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Cotton mkts closed in north India
23 Jul 2008 4:52 pm



Abohar - Most of the spot cotton lint markets across north India remained closed Wednesday amid the tension over Dera Sachha Sauda controversy.

 

[rakeshmalik]

Cotton prices touch season's high, may go up further

KARACHI (July 24 2008): Panic buying of cotton by the mills may push the prices at the new peak in the coming days, dealers said on the cotton market on Wednesday. The Karachi Cotton Association (KCA) official spot rate surge was maintained for the second day, raising by Rs 25 to Rs 3875, they said.

Phutti prices were also higher in the ready business as in Punjab the rates were up by Rs 50 to Rs 2025-2150, in Sindh prices followed the same pattern, rising by the same amount at Rs 2000-2050, they added. Most of the deals reported at last month's highest level at Rs 4400 and market players are anticipating that the prices may increase further in the coming days.

The spinners indulged in hectic buying to make yarn for better return, some brokers said. Fresh phutti arrival may ease prices but it seems difficult because there were strong mill demand to meet the requirements, they added. On Tuesday, the NY cotton futures finished easier on investor sales but the market is range-bound, should stay in a band for now, brokers said.

The key December cotton contract slid 1.20 cents to finish at 71.58 cents per lb, dealing from 71.51 to 73.14 cents. Volume traded in the December contract stood at 9,678 lots at 2:45 pm EDT (1845 GMT).

The following deals were reported: some 400 bales of cotton from Sanghar sold at Rs 4150, 200 bales from Tando Adam at Rs 4150, 200 bales from Shahdadpur at Rs 4200, 100 bales from Hyderabad at Rs 4200, 1000 bales from Pakpattan at Rs 4150, 200 bales from Haroonabad at Rs 4135, 1400 bales from Sahiwal at Rs 4150-4175, 200 bales from Hasilpur at Rs 4150, 200 bales from Arifwala at Rs 4150, 1000 bales from Mian Chunnu at Rs 4150, 600 bales from Burewala at Rs 4150-4200, 200 bales from Mongi Bahawal at Rs 4150, 800 bales from Chichawatni at Rs 4150, 200 bales from Punjab Cotton at 4200 (Exporter to Mill for Karachi Delivery) and 200 bales from Kabirwala at Rs 4200, dealers said.

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The KCA Official Spot Rate for Local Dealings in Pak Rupees
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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 3,875.00 50 3,925.00
Equivalent-------------------------------------------------
40 Kgs 4,153.00 50 4,203.00
===========================================================

 

[rakeshmalik]

Spun Yarn Prices in India

21 July 2008 - Spun yarn prices continued this month rising in the cotton system in India. Cotton yarn prices were further stimulated by a new increase in cotton prices, although less surging in the last weeks. Blended yarn prices also climbed, especially polyester-cotton, according to the series of price statistics released by our India Correspondent. Viscose and polyester-viscose yarn prices are less significantly increasing.



Cotton Prices
Cotton Prices Supported by Stronger Demand (Weekly Report)
21 July 2008 - Cotton prices resisted the fall in commodity markets in the last week, reflecting a rebound in demand from spinners after US futures fell 10% from a month ago. The Indian monsoon could be weaker than expected, in addition, with delays being reported in the planting progress. A lack of rain in India could reduce the next domestic crop, possibly leading to higher prices on the international market.



Cotton Textile Crisis Announced by Latest Data
18 July 2008 - Rising production costs in Asia and slowing down clothing sales at US and EU stores may rapidly result in a global textile crisis. Latest data supplied by cotton analysts are indicating that cotton consumption will be lower than expected in the coming cotton season, starting in August. A decline in cotton use is even announced by two major forecasting bodies. In addition, cotton consumption would have already decreased in the currently expiring season, according to cotton specialist Paul Reinhart.

 

[rakeshmalik]

China cotton reports

Washington Could Monitor Imports from China in 2009
23 July 2008 - The United States could monitor clothing imports from China in 2009 in order to possibly launch anti-dumping investigations after quotas will have been removed at the end of the current year. The already existing programme for monitoring shipments from Vietnam would actually be extended for an additional year with its coverage expanded to Chinese products.



Spun Yarn Prices in China (Biweekly Report)
18 July 2008 - Cotton and polyester yarn prices remained unchanged over the last two weeks in China but viscose yarn prices sharply rebounded, in line with a sudden rise in staple fiber prices. Demand for spun yarns stayed relatively depressed, reflecting the current slowdown in China's textile and clothing exports. Yarn production in the cotton system reached for the first time 2 million tons in June, however.



Viscose Staple Fiber and Filament Prices (Bi-Weekly Report)
17 July 2008 - Viscose prices finally bottomed out in China, suddenly surging 500 yuan on spot markets and putting an end to a fall of 30% in the last six months. The government may announce a 10% increase in tax rebates for exporters of viscose fibers, in addition. The decision would boost prices on the domestic market, putting pressure on international prices at the same time.

 

[rakeshmalik]

India contracts cotton import deals
24 Jul 2008 11:48 am

Mumbai - Traders in the domestic market have entered deals for import of around five lakh bales of cotton after the government abolished import duty on cotton early this month. Most of the deals have been made by millers in south India.

Traders say most of the cotton would be coming from Tanzania, Pakistan and Bangladesh. Interestingly, Pakistan and Bangladesh had imported heavy quantity of cotton from India during the current season, and both the countries are now exporting it back to India.

An official with the Cotton Corporation of India (CCI) alleges that inferior-quality cotton is being imported from Bangladesh at the same rate, at which superior-quality cotton was exported to that country. Millers did not buy at the time when enough cotton was available in the domestic market, and they are now importing inferior-quality of cotton, he adds.

As per the estimates of Cotton Advisory Board (CAB), India is expected to produce 3.15 crore bales of cotton during the current season. Out of this, 85 lakh bales are likely to be exported. Traders, however, are pegging the exports at 1.07 crore bales.

Looking at the shortage of cotton in the domestic market due to heavy exports, the Central government abolished 14 per cent import duty on cotton as well as one per cent export incentive early this month in order to discourage exports from the country.

 

[rakeshmalik]

Cotton lint trades above Rs 2,900
24 Jul 2008 3:28 pm

Abohar - Cotton lint rallied further to trade above Rs 2,900/maund on support of consistent demand from millers at major markets across north India Thursday.

Prices are increasing continuously on reports of low sowing in Maharashtra, Gujarat, Andhra Pradesh and Karnataka due to absence of rainfall. The surge in international market is also supporting the domestic prices.

Cotton acreage has reduced in north India also, but the condition of crop is said to be good. Traders say average yield will improve as number of plants per acre is more this time. Though the overall production will be down compared to previous year due to reduced area.

In Punjab, cotton lint traded at Rs 2,900/maund at Budhaldha, Taapa and Rampura; Rs 2,880/maund at Malot and Bathinda; Rs 2,865-Rs 2,870/maund at Abohar; and Rs 2,855-Rs 2,860/maund at Manasa.

Cotton lint traded at Rs 2,800-Rs 2,850/maund in Haryana and at Rs 2,750-Rs 2,810/maund in Rajasthan.

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Cotton lint unchanged in west India
24 Jul 2008 4:08 pm

Mumbai - Cotton lint traded almost steady at the spot market across western India Thursday. Prices have became stable as millers have stopped buying in the market. The reports of deals for huge cotton import have also affected the sentiments..

A few cotton-growing areas in Maharashtra and Karnataka received rains in the last 24 hours that are said to be helpful for the crop. The Met Department has predicted rainfall during next three days in Maharashtra, Gujarat, Andhra Pradesh and Karnataka. Sowing of cotton in these regions has not completed yet and the rains may help resume the process.

At Kadi market in Gujarat, cotton lint S-6 A-grade was quoted at Rs 28,200-Rs 28,500/candy while average-grade traded at Rs 27,500-Rs 27,800/candy.

In Maharashtra, the 28MM cotton lint traded at Rs 27,800-Rs 28,300/candy; 29MM cotton lint traded at Rs 28,400-Rs 28,600/candy; while 30+MM cotton lint traded at Rs 28,600-Rs 28,900/candy; and 31+MM cotton lint traded at Rs 29,100-Rs 29,500/candy.

At Sendhwa market in Madhya Pradesh, the 28MM cotton lint traded at Rs 27,800-Rs 28,200/candy; 29/30MM cotton lint traded at Rs 28,300-Rs 28,800/candy; and 31MM cotton lint at Rs 28,700-Rs 29,000/candy; and DCH variety traded at RS 31,500-Rs 33,000/candy.

 

[rakeshmalik]

Cotton prices hit new high at Rs 4450

KARACHI (July 25 2008): Cotton prices hit the new high at Rs 4450 per maund on rising fears about the decrease in production during the current season, dealers said on the cotton market on Thursday. As a result, the Karachi Cotton Association (KCA) did not show any reluctance in looking ahead for the third day, raising official spot rate by Rs 50 to Rs 3925, dealers said.

Some 200 bales of cotton from Pakpattan done at Rs 4250 (exporter to mill) for Karachi delivery , same figure from Chichwatni and Haroonabad finalised at the same figure respectively, they said. In the ready business, phutti prices were at Rs 2125-2250 in the Punjab and in Sindh, the rates were at Rs 2100-2150, they said.

It is most likely that the prices may depict softness in the near future as the market has touched the new high due to short production for this season, leading cotton analyst, Naseem Usman said. Steady trend persisted for the last several sessions in the market as buyers outnumbered the sellers due to short supply position, they said.

They said that despite the falling trend in the global market, the local mills were engaged in forward buying and this was the main factor which is causing the upward trend in the market. The mills preferred to buy the local stuff to save themselves from the long process and higher cost of imports, they said.

They also said that present uncertainty in the market may push the rates higher in days to come. On Wednesday, the NY cotton futures settled firmer on trade buying and investment fund short-covering to wipe out losses and the market may be poised to probe higher this week, brokers said. The key December cotton contract surged 1.36 cents to finish at 72.92 cents per lb, dealing from 70.78 to 73.70 cents. Volume traded in the December contract stood at 10,966 lots at 2:49 pm EDT (1849 GMT).

THE FOLLOWING DEALS WERE REPORTED: some 400 bales of cotton from Sanghar sold at Rs 4200, 200 bales from Haderabad at Rs 4200, 100 bales from Tando Adam at Rs 4200, 1200 bales from Burewala at Rs 4200, 600 bales from Mian Channu at Rs 4200, 1000 bales from Chichawatni at Rs 4200, 600 bales from Arifwala at Rs 4200, 600 bales from Khanewal at Rs 4200, 200 bales from Gojra at Rs 4200, 200 bales from Kasowal at Rs 4200, 400 bales from Sahiwal at Rs 4200, 400 bales from Kabirwala at Rs 4200, 200 bales from Garha Mor at Rs 4190, 200 bales from Haroonabad at Rs 4200 and 200 bales from Hasilpur at Rs 4200, dealers 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 3,925.00 50 3,975.00
Equivalent-------------------------------------------------
40 Kgs 4,206.00 50 4,256.00
===========================================================