Cotton

[rakeshmalik]

Spot rate lowered by Rs 75 amid hectic business on cotton market

KARACHI (August 27 2008): Brisk trading was seen on the cotton market on Tuesday as most of the ginners tried to dispose off the unsold stock ahead of the fresh phutti arrivals, dealers said. The official spot was down by Rs 75 to Rs 4050, they said.

In the ready business, the prices of phutti were modestly lower, shedding Rs 25 to Rs 1850-1925 in Sindh, in the Punjab rates fell sharply by Rs 100 to Rs 1800-1950, they said. Market sources said that the mills were active as most of the ginners showed interest in lowering the asking prices due to good crop for the current season.

Commenting on the textile business, some analysts said that the news of the end of strike of goods transport was a positive development as it would save millions of foreign exchange. For the last seven or eight days, several items were lying under open sky and may be damaged for any reason, which could cause loss to the country's earnings, they said.

On Monday, the NY cotton futures closed lower, but about mid-range as a swift bout of profit-taking took prices down to five-day lows, where, as in recent sessions buyers emerged almost immediately, traders said. Key December contract closed down 0.51 cent at 69.12 cents a lb. The contract ranged from 67.62 and 70.48 cents, setting a lower low and a higher high. After hours, cotton was down 0.65 cent at 68.98 cents. December turnover was 7,909 lots by 3:26 pm EDT (1959 GMT).

THE FOLLOWING DEALS WERE REPORTED: 3000 bales of cotton from Shahdadpur sold at Rs 4100, 3000 bales from Tando Adam at Rs 4100, 2000 bales from Sanghar at Rs 4075-4100, 1000 bales from Mirpurkhas at Rs 4075-4100, 600 bales from Khipro at Rs 4075-4100, 400 bales from Sanjhoro at Rs 4100, 400 bales from Jhole at Rs 4100, 600 bales from Shahpur Chaker at Rs 4075-4100, 800 bales from Gojra at Rs 4125, 600 bales from Bhawalnagar at Rs 4050-4075, 1000 bales from Burewala at Rs 4100, 600 bales from Arifwala at Rs 4100, 1000 bales from Chichawatni at Rs 4100, 600 bales from Pir Mahal at Rs 4100, 1000 bales from Mian Channu at Rs 4100 and 400 bales from Hasilpur at Rs 4100, 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 4,050.00 50 4,150.00
Equivalent-------------------------------------------------
40 Kgs 4,340.00 50 4,440.00
===========================================================

 

[rakeshmalik]

Cotton lint rises in west India
27 Aug 2008 5:31 pm

Mumbai - Cotton lint prices were quoted higher by Rs 100/candy at major markets across western parts of the country Wednesday.

At Kadi market in Gujarat, cotton lint S-6 A-grade was quoted at Rs 28,300-Rs 28,500/candy while average-grade traded at Rs 27,300-Rs 27,800/candy.

In Maharashtra, the 28MM cotton lint traded at Rs 27,800-Rs 28,100/candy; 29MM cotton lint traded at Rs 28,200-Rs 28,400/candy; while 30+MM cotton lint traded at Rs 28,500-Rs 28,800/candy; and 31+MM cotton lint traded at Rs 28,900-Rs 29,300/candy.

At Sendhwa market in Madhya Pradesh, the 28+MM cotton lint traded at Rs 27,800-Rs 28,000/candy; 29MM cotton lint traded at Rs 28,100-Rs 28,500/candy; 30+MM cotton lint traded at Rs 28,600-Rs 28,800/candy; and 31+MM cotton lint at Rs 28,900-Rs 29,200/candy; and DCH variety traded at Rs 31,000-Rs 32,000/candy.

 

[rakeshmalik]

Cotton lint prices gain in Punjab
27 Aug 2008 5:29 pm

Abohar – Cotton lint prices gained amid indefinite strike by ginners in Punjab Wednesday.

In Punjab, cotton lint traded at Rs 2,810-Rs 2,830/maund at Budhaldha, Taapa and Rampura; Rs 2,790-Rs 2,810/maund at Malot and Bathinda; Rs 2,770-Rs 2,780/maund at Abohar; and Rs 2,750-Rs 2,770/maund at Manasa.

Cotton lint traded at Rs 2,720-Rs 2,770/maund in Haryana and at Rs 2,650-Rs 2,690/maund in Rajasthan.

New crop September full delivery was quoted at Rs 2,705-Rs 2,725/maund in Punjab. New crop October full delivery was quoted at Rs 2,600-Rs 2,625/maund.

 

[rakeshmalik]

Buying interest increases on cotton market

KARACHI (August 28 2008): Buying interest renewed on the cotton market on Wednesday as firmer dollar rate is an attraction for the exporters due to better return, dealers said. The official spot rate was given push and raised by Rs 25 to Rs 4075, they said.

The prices of phutti were at Rs 1850-1900 in Sindh, in the Punjab, the rates were at Rs 1800-1925, they added. The exporters were active to cover the forward buying, in the meantime, the mills were also taking part as well. The cotton circle people were expecting several incentives in the Thursday's textile package meeting, they added.

On Tuesday, the NY cotton futures finished firmer, lifted by news that Hurricane Gustav in the central Caribbean was speeding up as it headed north-west and some participants feared its impact may impair US crops, brokers said.

Key December cotton futures settled 34 cents higher at 69.46 cents a lb. The contract traded in an inside range, a higher low at 68.26 and a lower high at 69.94 cents a lb. After hours, December cotton was up 0.53 cent, or 0.77 percent, at 69.65 cents. By 3:12 pm (1912 GMT), the December contract volume came to 6,726 lots.

The following deals were reported: 3000 bales of cotton from Shahdadpur at Rs 4100-4150, 3200 bales from Tando Adam at Rs 4100-4150, 2000 from Sanghar at Rs 4100-4125, 1600 bales from Khipro at Rs 4100-4125, 800 bales from Hala at Rs 4100-4125, 1000 bales from Hyderabad at Rs 4100, 1000 bales from Mirpurkhas at Rs 4100-4125, 400 bales from Jhole at Rs 4100-4125, 400 bales from New Saeedabad 4100-4125, 1000 bales from Burewala at Rs 4100-4125, 800 bales from Arifwala at Rs 4100, 1200 bales from Chichawatini at Rs 4100-4125, 1800 bales from Mian Channu at Rs 4100-4125, 800 bales from Khanewal at Rs 4100, 600 bales from Gojra at Rs 4100-4125, 400 bales from Pir Mahal at Rs 4100, 400 bales from Kabirwala at Rs 4100 and 1000 bales from Pakpattan at Rs 4100, 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 4,075.00 50 4,175.00
Equivalent-------------------------------------------------
40 Kgs 4,367.00 50 4,467.00
===========================================================

 

[rakeshmalik]

New York cotton futures settle firmer

NEW YORK (August 28 2008): Cotton futures finished firmer on Tuesday, lifted by news that Hurricane Gustav in the central Caribbean was speeding up as it headed north-west and some participants feared its impact may impair US crops, brokers said. Key December cotton futures settled 34 cents higher at 69.46 cents a lb. The contract traded in an inside range, a higher low at 68.26 and a lower high at 69.94 cents a lb.

After hours, December cotton was up 0.53 cent, or 0.77 percent, at 69.65 cents. By 3:12 pm (1912 GMT), the December contract volume came to 6,726 lots. Cotton prices stayed strong throughout the session as news that Hurricane Gustav's wind speed accelerated and could impact Texas cotton crop by next week - brokers. Hurricane Gustav's winds increased to 90 mph as it churned toward south-western Haiti and headed north-west.

Hurricane Gustav could threaten Gulf of Mexico oil production off the coasts of Louisiana and Texas by the middle of next week, an AccuWeather Inc meteorologist said. "Gustav certainly reversed crude oil, which was lower this morning and that certainly could ramp up commodities in general," said Keith Brown of Keith Brown and Co in Georgia. Brown added that some damage occurred to cotton crops across the Southeast from the effects of Hurricane Fay.

"Several clients told me that cotton that was opening got knocked to the ground. If we get hit with another storm and copious amounts of rain it could impale the crop," he said. After a sharp and sudden decline in prices on Monday, cotton may still have unfinished technical business to the upside - brokers. Longer-term, some analysts said they see cotton as cheap with the drop in US cotton plantings keeping prices supported as well as declines in output in most producing countries.

In Texas cotton regions, forecasts show mostly dry conditions through Saturday with temperatures mostly above normal, according to DTN Meteorlogix. Brokers Flanagan Trading Corp identified support in the December contract at 69.30 and 68.50 cents, and resistance at 70.00 and 70.95 cents. Monday's volume came to 12,390 lots, exchange data show. Open interest in cotton futures rose by 970 lots to 216,221 open contracts as of August 25, exchange data show.

 

[rakeshmalik]

India's summer-sown crop damage limited in flood-hit areas
28 Aug 2008 2:48 pm

Mumbai - Floods in many provinces of India in the last couple of weeks have affected summer-sown crops such as paddy, corn and cotton, although government officials say the damage is limited.

Heavy rains in August have led to flooding in several Indian states, with Punjab, Bihar, Uttar Pradesh and Andhra Pradesh being the worst affected.

In the northern Indian province of Punjab, around 41,000 hectares sown under cotton, paddy and corn have been damaged, preliminary reports from the state government show.

"However, this area is quite small when compared with the total summer-sown area of 39 lakh hectares. Hence, the damage is limited," said an official with the state agriculture department.

Floods in seven districts of Bihar have damaged 24,000-28,000 hectares of paddy and corn crops. But crop damage data is still being collated, said the official.

"There is no chance of re-sowing in these areas, as the water levels are still high. Once the water recedes, the farmers might go in for the winter crops such as lentils," said an official with the Bihar agriculture department.

In the southern Indian province of Andhra Pradesh, preliminary data show around 413,500 hectares have been damaged due to the floods.

Major crops hit in the region are paddy, corn and groundnuts.

"Some of the farmers have asked for paddy seeds at a subsidized rate for re-sowing in these areas," said an official with the Andhra Pradesh agriculture department.

The total area under summer crops in Andhra Pradesh is around 79 lakh hectares.

According to Vijay Setia, president of the All India Rice Exporters' Association, the damage to paddy crop in these areas is nominal and is unlikely to affect the country's overall production.

India's summer crops such as rice, cotton, corn and oilseeds are sown from June and harvested during October and are mostly dependent on monsoon rains for growth.

 

[rakeshmalik]

Spot rate raised further amid persistent demand

KARACHI (August 29 2008): Improved activity was seen on the cotton market on Thursday despite rise in the prices, dealers said. The official spot was increased by Rs 50 to Rs 4125 due to higher lint demand by the mills and exporters, they said. The prices of phutti were at Rs 1800-1900 in Sindh, in the Punjab, the rates were at Rs 1800-1950, they said.

Market sources said that the prices were modestly up due to hectic activity by the mills and exporters and it is likely that the present trend in the rates may continue in the near future. On the other hand, the ginners were also trying to capture the opportunity in anticipation fresh arrival of phuitt, they said.

On Wednesday the NY cotton futures rose ending at a two-week high as gains accelerated when the path of Tropical Storm Gustav was projected to collide with the Gulf Coast, brokers said. Early in the session cotton rose with other commodities as the dollar fell, then added to gains as traders worried the storm could deluge key growing areas.

Key December cotton futures closed 1.17 cents stronger at 70.63 cents a lb. The December contract extended up to a two-week high at 71.18 from a higher low at 69.51 cents a lb. After hours, December cotton remained 1.14 cent, or 1.64 percent higher, at 70.60 cents. By 3:00 pm (1912 GMT), the December contract volume came to a healthy 11,347 lots.

THE FOLLOWING DEALS WERE REPORTED: 3000 bales fo cotton from Shahdadpur sold at Rs 4125-4175, 3000 bales from Tando Adam at Rs 4125-4175, 2000 bales from Sanghar at Rs 4125-4150, 1000 bales from Mirpurkhas at Rs 4100-4125, 600 bales from Jhole at Rs 4125-4150, 800 bales from Hala at Rs 4150, 600 bales from Khipro at Rs 4125, 400 bales from Hyderabad at Rs 4125, 400 bales from Shahpur Chaker at Rs 4150, 200 bales from Nawabshah at Rs 4125, 200 bales from Khanpur at Rs 4075, 1000 bales from Burewala at Rs 4075-4125, 1000 bales from Chichawatni at Rs 4100-4125, 600 bales from Kabirwala at Rs 4125, 800 bales from Bhawalnagar at Rs 4100, 1000 bales from Pakpattan at Rs 4090-4100, 1000 bales from Mian Channu at Rs 4100-4125, 600 bales from Arifwala at Rs 4100, 200 bales from Muridwala at Rs 4100, 200 bales from Gojra at Rs 4100 and 200 bales from Mungi Bunglow at Rs 4050, 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 4,125.00 50 4,225.00
Equivalent-------------------------------------------------
40 Kgs 4,421.00 50 4,521.00
===========================================================

 

[rakeshmalik]

Improvement reported in cotton crop prospects

LAHORE (August 29 2008): According to circles close to the Karachi Cotton Association (KCA), chances of reaping a wholesome cotton crop (2008-2009) have become very promising so that output during the current season may be as high as 13 million or even 14 million domestic size bales.

Knowledgeable sources said in Karachi recently that the Agricultural Development Commissioner, Government of Pakistan, Dr Qadir Bux Baluch, recently told the Chairman KCA, Mian Iqbal Umer, that due to adequate efforts made by the government to eradicate the mealy bug menace from the standing cotton crop, possibilities of a much higher production have risen sharply.

Sources added that vigilance and timely steps taken by the agricultural experts, such as introducing predators in the cotton fields, most presence of mealy bug has been wiped off. As a second line of Defence, mineral oil has been imported from Egypt for application to cotton fields to ward off any residual presence of the mealy bug where necessary.

Furthermore, recent floods in the rivers may have damaged upto 300,000 bales of cotton but this quantity is likely to be made up due to better showing in other parts of the cotton belt. This anticipated recovery in cotton output during the current season (2008-2009) should be a big boon to the entire cotton economy of Pakistan from the growers and ginners up to the textile manufacturers and garment producers which should add up to a significant improvement in the overall economy of Pakistan.

Cotton trade and the textile industry should be delighted at this development as not only the import of expensive cotton will decrease but even the cost of production of several of the beleaguered units of the textile industry in Pakistan would also be reduced.

Cotton prices over the past few weeks have been essentially vacillating between Rs 4,100 and Rs 4,200 per maund (37.32 kgs) with an occasional spike here and there. Brokers variously said on Thursday that lint prices remained mostly unchanged to steady. The quality of Sindh styles arriving now was said to be good but grades of Punjab varieties are still on the lower side.

A notable feature of the market concerns the presence of exporters since the last couple of days. With clearing of the weather for the time being and advance of the current season (2008-2009), cotton arrivals should pick up materially. Recent transactions in the ready market indicate that daily trade of cotton has increased appreciably as supplies are also being augmented.

A big drag in expeditious pick up of cotton could be due to high prevailing bank mark-up rates coupled with anti-inflationary measures being put in place by the State Bank of Pakistan, the federal bank, to curb inflation.

With passage of time and increased arrivals of seedcotton, it would have brought down lint prices, but due to smaller carryover of cotton from the previous season (2007-2008) to the current season (2008-2009) and overall strength of the United States dollar against the Pakistani rupee, lint prices may not go down much in local currency units. Moreover, the cost of inputs to the growers to plant and propagate cotton has also gone up considerably.

Generally speaking, the seedcotton (kapas/phutti) prices in Sindh reportedly ranged from Rs 1,850 to Rs 1,900 per 40 kgs, while in Punjab they are said to have ranged from Rs 1,800 to Rs 1,950 per 40 kilogrammes. Lint prices on Thursday are generally said to have ranged from Rs 4,100 to Rs 4,150 per maund (37.32 kgs) in Sindh, while in the Punjab they are said to have ranged from Rs 4,075 to Rs 4,100 per maund according to the quality.

Cottonseed (kakra/binola) prices in Sindh reportedly ranged from Rs 720 to Rs 740 per maund (37.32 kgs) while in the Punjab they are said to have ranged from Rs 720 to Rs 730 per maund. In ready sales on Thursday, 1,000 bales of cotton from Hyderabad and 2,000 bales each from Shahdadpur and Tando Adam all reportedly sold at Rs 4,125 per maund.

Later, 400 bales from Shahdadpur also sold at Rs 4,150 per maund. In Punjab, 400 bales from Bahawalnagar and 600 bales from Arifwalla both sold at Rs 4,075 per maund, while 200 bales from Gojra and 400 bales from Chichawatni both sold at Rs 4,100 per maund. Buying interest appeared more pronounced in the evening.

Political wrangling continues unabated in Pakistan with main features being the fallout pertaining to the recent resignation of President Pervez Musharraf (18th of August 2008), imbroglio concerning restitution or otherwise of deposed Chief Justice Iftikhar Mohammad Chaudhary and other judges and now the candidacy declared by Co-chairman Asaf Ali Zardari of the Pakistan People's Party (PPP) for the office of President of Pakistan.

These activities have not only brought polarisation in Pakistan with separatist threats and fissiparous tendencies apparent in the smaller provinces of Pakistan such as Balochistan and the North West Frontier Province (NWFP), but increasing inroads being made by the Taliban are dampening business activities in the country. Loadshedding and increasing absence of power supply has also frustrated business and industrial activity to a considerable extent concerning which both big and small textile industries are complaining regularly.

Moreover, the All Pakistan Textile Mills Association (Aptma) recently appealed to the government asking for a separate power tariff because it claimed that the textile industry, being a large consumer, is being unnecessarily burdened because of line losses during power transmission and inefficiencies and malpractices of the systems relating to other consumers which are being wrongly passed on to the textile industry who remain good paymasters.

Aptma fears that if power is not supplied to its units on equitable and economical basis, it could face more closures and shutdowns leading to further decrease in employment, foreign exchange earnings and decrease in tax collections.

 

[rakeshmalik]

ICE cotton drops on weakness
29 Aug 2008 10:17 am

New York - ICE Futures US cotton settled sharply lower Thursday in a last minute slide sparked by a late-day commodities selloff.

Futures are expected to continue in light range trade as the market awaits news to move on ahead of the 2008 U.S. cotton harvest.

Most-active December futures settled 127 points lower at 69.36 cents a pound and the nearby October contract settled down 129 points at 67.16.

December cotton opened modestly higher in light trade and rose to the 70.92 session high midday. The contract failed to break above 71 cents and tumbled back, eventually slipping to the downside. Cotton slipped following the crude oil selloff that sparked losses in other commodities and settled sharply lower on the day.

Cotton remains bound to the range trade it has established in previous months as there is little news to trade on and the market is showing muted response to available news, analysts said.

"The market is just continuing to wait," said Keith Brown, principal of Keith Brown & Co. in Moultrie, Ga. Supportive cotton exports and consumption data released Thursday were not enough to hold up prices, which will likely continue range-bound from 67-72 cents basis December in the near term, said Sharon Johnson, senior cotton analyst at First Capitol Group in Atlanta.

Cotton could see bullishness if Tropical Storm Gustav hits cotton growing areas, Brown said.

"Any crop inundated with about 15 inches of rain is not good," Brown said. Gustav is currently in the Caribbean and forecast to make landfall anywhere from the middle of the Texas coast to Tallahassee, Fla, according to the National Hurricane Center. Behind Gustav is Tropical Storm Hannah about 305 northeast of the Northern Leeward Islands, the NHC reported.

ICE daily cotton stocks decreased by 40,875 480-pound bales Thursday to total 1.562 million bales with 41,104 awaiting review.

ICE cotton open interest decreased by 1,259 positions Wednesday to total 213,958, according to the exchange.

Volume was estimated 10,516 lots. In options, approximately 4,092 calls and 3,810 puts traded, according to exchange data.

Close Change Range
Oct 67.16 -129 pts 66.50-68.69
Dec 69.36 -127 pts 68.62-70.92
Mar 73.99 -138 pts 73.84-75.29

 

[rakeshmalik]

Cotton lint higher in north India
29 Aug 2008 3:11 pm

Abohar – Cotton lint prices were quoted higher from yesterday's level at major markets across north India Friday. Arrival of new cotton has started at a few places in Punjab. Ginning factories are also making muhurt deals.

Cotton lint traded at Rs 2,800-Rs 2,860/maund in Punjab; Rs 2,740-Rs 2,810/maund in Haryana; and Rs 2,670-Rs 2,720/maund in Rajasthan.

New cotton crop September full delivery was quoted at Rs 2,725-Rs 2,745/maund in Punjab. New crop October full delivery was quoted at Rs 2,625-Rs 2,645/maund and October first week delivery at Rs 2,690-Rs 2,710/maund.