Cotton

Cotton acreage to go up in north India
Abohar - Sowing of cotton has finally been started in north India after a delay of around 10 days. The process had to be delayed as harvesting of wheat could not be done in time.

29/04 17:21 Cotton futures end up marginally

29/04 16:41 Cotton lint firm in west India

29/04 16:34 Cotton lint steady in north India

29/04 09:55 ICE cotton rises on grains support

Cotton acreage to go up in north India

29 Apr 2008 3:32 pm

Abohar - Sowing of cotton has finally been started in north India after a delay of around 10 days. The process had to be delayed as harvesting of wheat could not be done in time. However, traders are expecting cotton sowing to pace up by the first week of May.

The purchasing officer of a spinning mill says, only one per cent to two per cent sowing is expected to be done in April in the northern region. Last year, cotton was sown in 17 per cent - 18 per cent area during the same period.

The purchasing officer says, most of wheat crop is lying in fields following unexpected rains recently. Apart from this, farmers are preferring labourers than harvestors for the harvesting. However, wheat harvesting in getting delayed as labourers are not coming to other states following implementation of National Employment Guarantee Scheme in Bihar and Uttar Pradesh. All these factors are further delaying the sowing of cotton.

The purchasing officer says, cotton sowing is expected to gain pace in the first week of May and would be completed by the last week. Farmers would be able to sow cotton at a good pace with the starting of water supply from canals.

Informing about the acreage of cotton in the new season, the purchasing officer says, last year two main crops - cotton and rice - earned equal profits for farmers. However, this year, the acute shortage of irrigation water may compel farmers to prefer cotton as the main crop because the canal water will not be sufficient for rice farming.

According to traders' estimates, cotton acreage will remain same in Punjab but it will increase in Haryana and Rajasthan. In Haryana, the acreage is likely to increase from last year's 4.78 lakh hectares to five lakh hectares. In Rajasthan, it will go up from last year's 3.68 lakh hectares to between 3.90 lakh hectares and 4.20 lakh hectares. In Punjab, the acreage will be 6.48 lakh hectares alike last year. The total cotton acreage across north India is expected to jump from last year's 14.94 lakh hectares to 15.38 lakh hectares - 15.68 lakh hectares this year.

Cotton acreage in north India

State
Acreage in 2007-08 *
Production in 2007-08
Average yield in 2007-08
Acreage in 2008-09 **

Punjab
6.48
24
630
6.48

Haryana
4.78
16
569
5.00

Rajasthan
3.68
9
416
3.90 - 4.20

Total
14.94
49
558
15.38 - 15.68



* Estimate of Cotton Advisory Board, ** Traders' Estimate,

(Figures in lakh)

Fake BT cotton seeds were used heavily in Gujarat during last two-three years. However, a huge quantity of crop was affected by mili-bug during the last season. Therefore, the local farmers are now expected to prefer branded BT cotton seeds. Though this will cost a bit higher to them, their crop will be saved from insecticides.

Cotton futures end up marginally

29 Apr 2008 5:21 pm

Mumbai - Cotton futures continued to move up with small gains and closed green amid buying by traders during intraday session on both the domestic exchanges - National Commodity and Derivatives Exchange (NCDEX) and Multi Commodity Exchange (MCX) - Tuesday. While April cotton rose Rs 2.70/20kg, MCX cotton gained Re 0.40/20kg.

Spot cotton lint traded steady due to lack of deals at the upper level despite consistent demand from millers at the spot markets across north India Tuesday.

Meanwhile, sowing of cotton has started in northern region of the country. According to traders' estimates, cotton acreage will remain same in Punjab but it will increase in Haryana and Rajasthan. In Haryana, the acreage is likely to increase from last year's 4.78 lakh hectares to five lakh hectares. In Rajasthan, it will go up from last year's 3.68 lakh hectares to between 3.90 lakh hectares and 4.20 lakh hectares. In Punjab, the acreage will be 6.48 lakh hectares alike last year. The total cotton acreage across north India is expected to jump from last year's 14.94 lakh hectares to 15.38 lakh hectares - 15.68 lakh hectares this year.

Spot cotton lint prices remained unchanged despite normal arrivals and demand at the markets across western India Tuesday.

ICE Futures US cotton settled marginally higher Monday as the listless market meandered behind grains trading amid a lack of news, analysts said. Most-active July cotton settled 17 points higher at 71.61 cents a pound and nearby May futures settled up 67 points at 69.13 cents.

NCDEX benchmark April cotton closed up Rs 2.70 at Rs 505.60/20kg, after witnessing movement in the range of Rs 503.50 and 507.50/20kg. Open interest in April cotton was 451 lots.

MCX April cotton contract traded up Re 0.40 at Rs 505.10/20kg.

Cotton production likely to increase in India

30 Apr 2008 1:37 pm

Mumbai - According to the latest report of International Cotton Advisory Committee (ICAC), India is likely to retain its current position as second largest producer, user and exporter of cotton in the new season beginning in August.

India overtook the US to occupy the number two position after China during the 2006-07 cotton season, says the ICAC. According to ICAC’s analysis of the current global cotton situation, India does not face any challenge to its position as American farmers are shifting to other crops like corn.

Agreeing with the projection of the Cotlook Index, the ICAC said: “India is expected to continue in the same position in the next season as well, as in addition to US farmers, growers in other countries are also inclined to shift to the production of soybeans and wheat besides corn.”

The ICAC noted that India has so far produced 4.74 million tonnes (MT) of cotton in the current season as compared to 4.7 MT of the US. This season, India’s output has been pegged at 5.34 MT as against 4.14 MT of the US. According to Cotlook’s estimates, India’s production next season is likely to touch 5.61 MT while that of the US would decline further to 3.19 MT.

China continues to be the number one in production, consumption and imports. This despite a fall of over 100,000 tonnes in cotton production. Beijing is estimated to produce 7.62 MT cotton this season against last year’s 7.72 MT. The fall in Chinese cotton crop has led to increased exports by other countries. The world cotton exports are expected to rise by 10 percent to 9.1 MT from last season’s 8.2 MT.

The ICAC has also forecast that the cotton prices will go up in the international market because of an expected decrease in the stocks-to-mill use ratio in the world.

Cotton lint gains in north India

30 Apr 2008 3:47 pm

Abohar - Spot cotton lint traded slightly higher amid limited stocks and consistent demand from millers at the spot markets across north India Wednesday. Local millers are buying for their future requirement. Arrivals of cotton lint were almost negligible today.

A trader say, around 307 lakh bales of cotton lint has arrived in the markets across the country during the current season. Export deals were made for 82 lakh bales while shipment was of 72 bales. The unsold stock is estimated at 23.5 lakh bales, the trader adds.

Across Punjab, cotton lint traded at Rs 2,425-Rs 2,430/maund at Fazilka, Kotakpura, Muktasar and Bathinda; Rs 2,425-Rs 2,430/maund at Malot and Gidarbha; Rs 2,410/maund at Abohar; Rs 2,405/maund at Manasa; and at Rs 2,440-Rs 2,445/maund at Rampura, Barnala and Budhaldha.

Cotton lint traded at Rs 2,285-Rs 2,350/maund in Haryana and at Rs 2,150-Rs 2,270/maund in Rajasthan.

Cotton lint stable in west India

30 Apr 2008 3:50 pm

Mumbai - Spot cotton lint prices failed to witness movement and remained unchanged amid normal business at the markets across western India Wednesday. Sources say, a limited number of forward deals were made today.

A trader say, around 307 lakh bales of cotton lint has arrived in the markets across the country during the current season. Export deals were made for 82 lakh bales while shipment was of 72 bales. The unsold stock is estimated at 23.5 lakh bales, the trader adds.

At Kadi in Gujarat, cotton lint S-6 A-grade was quoted between Rs 22,200-Rs 22,600/candy while average-grade traded at Rs 21,500-Rs 22,000/candy. Kapas got offered at Rs 510-Rs 605/maund. The State recorded arrivals of 19,000 bales today.

In Vidarbha region of Maharashtra, the 28-mm cotton lint traded at Rs 21,300-Rs 21,600/candy; 29-mm cotton lint traded at Rs 21,800-Rs 22,100/candy. Around 9,000 bales arrived in the State today.

At Sendhwa market in Madhya Pradesh, the 28-mm cotton lint traded at Rs 21,600-Rs 21,900/candy; 29-mm cotton lint traded at Rs 22,100-Rs 22,400/candy; and 30/31-mm cotton lint at Rs 22,400-Rs 22,900/candy. Around 1,000 bales of cotton lint reached here today.

Cotton Price Decrease Boosting Demand (Weekly Report)

28 April 2008 - Cotton prices further fell in the last week on the international market, triggering a recovery in physical demand from spinners. A rising dollar and expiration of the nearby contract were behind the new decline in U.S. futures. Domestic cotton prices slightly rose in India while further increasing in Pakistan and staying stable in China. According to certain assumptions, China's planting areas are expected seriously falling in the next year.

NCDEX cotton ends sharply higher
30 Apr 2008 5:24 pm
Mumbai - Cotton contract on the National Commodity and Derivatives Exchange (NCDEX) closed sharply higher with gains of more than two per cent following heavy buying by traders and speculators during intraday session Wednesday. The contract on Multi Commodity Exchange (MCX) traded marginally up to remain almost flat. While April cotton jumped Rs 13.40/20kg, MCX cotton gained Re 0.10/20kg.

Spot cotton lint traded slightly higher amid limited stocks and consistent demand from millers at the spot markets across north India Wednesday. Local millers are buying for their future requirement. Arrivals of cotton lint were almost negligible today.

Spot cotton lint prices failed to witness movement and remained unchanged amid normal business at the markets across western India Wednesday. Sources say, a limited number of forward deals were made today.

A trader say, around 307 lakh bales of cotton lint has arrived in the markets across the country during the current season. Export deals were made for 82 lakh bales while shipment was of 72 bales. The unsold stock is estimated at 23.5 lakh bales, the trader adds.

ICE Futures US cotton settled lower Tuesday as speculative liquidation from weak outside commodities poured into the market and technicals deteriorated. Traders expect cotton prices to follow commodities direction amid unstable chart patterns which will likely guide futures lower. Most-active July cotton settled 101 points lower at 70.60 cents a pound and the nearby May contract settled at down 95 points at 68.18 cents.

NCDEX benchmark April cotton closed up Rs 13.40 at Rs 519.00/20kg, after witnessing movement in the range of Rs 506.70 and 519.00/20kg. Open interest in April cotton was 250 lots.

MCX April cotton contract traded up Re 0.10 at Rs 505.00/20kg.

Cotton lint rises in north India
2 May 2008 4:49 pm

Abohar - Spot cotton lint trading higher by Rs 10-Rs 15/maund limited stocks and improved buying from millers at the spot markets across north India Friday. Traders say, prices will remain higher due to declining stocks.

A trader say, around 307 lakh bales of cotton lint has arrived in the markets across the country during the current season. Export deals were made for 82 lakh bales while shipment was of 72 bales. The unsold stock is estimated at 23.5 lakh bales, the trader adds.

Across Punjab, cotton lint traded at Rs 2,450-Rs 2,455/maund at Fazilka, Kotakpura, Muktasar and Bathinda; Rs 2,450-Rs 2,455/maund at Malot and Gidarbha; Rs 2,440-Rs 2,445/maund at Abohar; Rs 2,425-Rs 2,430/maund at Manasa; and at Rs 2,460-Rs 2,465/maund at Rampura, Barnala and Budhaldha.

Cotton lint traded at Rs 2,280-Rs 2,350/maund in Haryana and at Rs 2,150-Rs 2,270/maund in Rajasthan.

Cotton lint advances in Gujarat
2 May 2008 5:25 pm

Mumbai - Spot cotton lint prices increased marginally amid slight improvement in demand in Gujarat, while the commodity traded unchanged across Maharashtra and Madhya Pradesh Thursday.

A trader say, around 307 lakh bales of cotton lint has arrived in the markets across the country during the current season. Export deals were made for 82 lakh bales while shipment was of 72 bales. The unsold stock is estimated at 23.5 lakh bales, the trader adds.

At Kadi in Gujarat, cotton lint S-6 A-grade was quoted between Rs 22,300-Rs 22,600/candy while average-grade traded at Rs 21,700-Rs 22,100/candy. Kapas got offered at Rs 520-Rs 605/maund. The State recorded arrivals of 20,000 bales today.

In Vidarbha region of Maharashtra, the 28-mm cotton lint traded at Rs 21,300-Rs 21,600/candy; 29-mm cotton lint traded at Rs 21,800-Rs 22,100/candy. Around 9,000 bales arrived in the State today.

At Sendhwa market in Madhya Pradesh, the 28-mm cotton lint traded at Rs 21,600-Rs 21,900/candy; 29-mm cotton lint traded at Rs 22,100-Rs 22,400/candy; and 30/31-mm cotton lint at Rs 22,400-Rs 22,900/candy. Around 1,000 bales of cotton lint reached here today.