Cotton

China’s long staple prices firm (9:21 GMT 13th May, 2008)
Harvesting at a peak in Australia (9:17 GMT 13th May, 2008)
New York futures: spec/hedge report (9:08 GMT 13th May, 2008)
ZCE settles lower (8:48 GMT 13th May, 2008)
The weather in China’s cotton regions turns dry (6:30 GMT 13th May, 2008)
China’s yarn output rises in April (4:43 GMT 13th May, 2008)
China Cotton Index (3:32 GMT 13th May, 2008)
CNCE settles softer (3:28 GMT 13th May, 2008)
China’s cotton imports rise in April (3:18 GMT 13th May, 2008)
China’s monthly textile exports rebound (2:44 GMT 13th May, 2008)
Sales slow on The Seam (21:08 GMT 12th May, 2008)

LATEST RAW COTTON ARRIVALS
(Position as on 10th (May 2008)
The per day arrivals are reported around 40,000 bales.

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

Punjab 21.50 23.75
Haryana 15.50 14.79
Rajasthan 9.00 8.00
North Total 46.00 46.54
Gujarat 109.00 90.00
Maharashtra 59.55 49.80
Madhya Pradesh 19.80 17.15
Central Total 188.35 156.95
Andhra Pradesh 42.85 32.00
Karnataka 7.00 5.40
Tamil Nadu 2.90 2.90
South Total 52.75 40.30
Others 1.90 1.00
Total 289.00 244.79
Plus Loose lint 11.70 11.50
Grand Total 300.70 256.29

Spot rate up in improved trading on cotton market

KARACHI (May 14 2008): Improved trading was seen on the cotton market on Tuesday as the official spot rate was raised by the Karachi Cotton Association (KCA), dealers said.The KCA official spot rate was upped by 25 to Rs 3,400, dealers said.

Commenting on the subdued business for the last many sessions, some cotton analysts said that the mills are looking in comfortable position as they have satisfactory stock to meet the requirements. The news appeared recently according to which the falling trend in the textile products is drawing due attention by the concerned authorities to adopt strong strategy to make these products competitive in the world market.

Contamination, falling quality and high prices were not attracting the buyers, instead, they are changing their destination due to these reasons, they said.

Explaining the market anticipations about the crop size for the next season, they said that the government is well informed that the country is not meeting desired target for cotton production for the last two year. Despite this, the reports are coming in the Media that shortage of irrigation water is persisting.

Cotton sowing is delayed in the Punjab due to shortage of irritation water, they said adding that this is best season for the cotton sowing, causing a great concern among the growers, cotton viewers said. Someone may wonder over the persistence of problems on both political and economic fronts.

It is a fact that new government is in grips of the chronic problems on the political front. When it will be able to look at the matters with full attention?, it is keenly awaited by the people. It is the textile sector, which has to prove its improved performance by earning improved foreign exchange, because it is availing several incentives for this purpose.

The following deals were reported as some 200 bales of cotton from Nawabshah sold at Rs 3600, same figure from Bucheri at the same rate, 1000 bales from Vehari at Rs 3450 and 372 bales from Harappa at Rs 3675, 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 3400.00 50 3450.00
-----------------------------------------------------------
Equivalent
-----------------------------------------------------------
40 Kgs 3644.00 50 3694.00
================================================== =========

Cotton Prices
Cotton Market Prices Boosted by Crude Oil Surge (Weekly Report)
12 May 2008 - Cotton prices were last week stimulated by a new surge in crude oil prices, as speculation was again shifting from stock markets to commodities. Sales should now be suspended on the physical market, however, as spinners will not easily accept New York's new price above 70 cents. U.S. official data confirmed a slowdown in cotton consumption in 2007-08 and 2008-09 which could maintain prices at current levels over the long term.

ICE cotton down on spec sales
14 May 2008 10:33 am



New York - US cotton futures fell on speculative selling triggered by a firm US dollar and on a turnaround from Monday's session in which prices posted small gains, brokers and analysts said Tuesday.

July cotton lost 91 points to settle at 70.90 cents, and new-crop December fell 90 points to 79.62 a pound.

"That turnaround Tuesday trade always seems to work. We were up a little yesterday, and after six straight higher closes to correct today was certainly permissible," said Keith Brown, principal of Keith Brown & Co. in Moultrie, Ga.

Even though crude oil rose sharply, a normally supportive influence for cotton, traders had a sellers' mentality and weak prices were a common theme among the New York softs commodity markets.

Chicago Board of Trade November soybeans, which compete with cotton for acres, rallied 36 1/2 cents a bushel, partly on ideas that drier weather may allow Midwest producers to plant more corn and fewer soybeans.

News for the cotton market was light and the fact that some states are behind on plantings is not a major concern for the market with total acreage already reduced so much this year. US cotton seedings were 36% complete as of Sunday, up from 26% the previous week but down from the 44% five-year average, the US Agriculture Department reported.

Cotton acres this year are estimated at 9.4 million, down from 10.8 million planted in 2007, the USDA said in its March 31 Prospective Plantings report.

Weather conditions are mostly dry Tuesday in West Texas, which will aid fieldwork preparation, though light rains are possible Thursday and Friday along with below-normal temperatures. Readings are expected to climb into the weekend, however. Light showers of 0.10-0.50 inch are possible in eastern areas of the state Wednesday, DTN Meteorlogix said.

The Delta region is forecast to see scattered showers and thunderstorms Wednesday through Friday, bringing 0.25-1.25 inches of rain to already saturated areas. The wet conditions have put Mississippi plantings behind normal at 21% complete as of Sunday, well off the average pace of 72%, and growers need an open weather window of four to five days to put plantings into high gear, a crop expert said.

In other news, large speculators added to both longs and shorts in the week to May 9, trimming their overall net-long position to 25,992 contracts, from 28,696 the previous week, the ICE speculation and hedging report showed. Speculators are now 10.4% net long the market, down from 11.6% last week.

Ten delivery notices were posted against May cotton, boosting deliveries for the period to 3,113, ICE reported.

Open interest Monday rose 2,008 to total 252,968 lots, ICE reported. Traders added 181 positions to July and 1,783 to the December contract.

Futures volume was estimated at 10,772 contracts, with 2,638 calls and 4,161 put options traded.

CCI: 3 cr plus cotton bales arrived
14 May 2008 2:33 pm



Mumbai - The current season saw arrivals of around one crore seventy thousand bales of cotton across the country as of May 10, according to the Cotton Corporation of India (CCI). Last year, 2.56 crore bales of cotton had arrived during the corresponding period.

It may be mentioned here that the Cotton Advisory Board has estimated total arrival of cotton to be around 3.10 crore bales in India this season.

So far, 21.50 lakh bales arrived at different markets across Punjab; 15.50 lakh bales in Haryana; nine lakh bales in Rajasthan; 1.09 crore bales in Gujarat; 59.55 lakh bales in Maharashtra; 19.80 lakh bales in Madhya Pradesh; 42.85 lakh bales in Andhra Pradesh; seven lakh bales in Karnataka; and 2.90 lakh bales in Tamil Nadu. The remaining states witnessed a combined arrivals of 1.90 lakh bales of cotton while loose arrivals were of 11.70 lakh bales.

Cotton lint firm in north India
14 May 2008 4:05 pm




Abohar - Spot cotton lint traded unchanged amid average business at major markets across north India Wednesday. There were reports of rainfall in some parts of Punjab and Haryana.

Across Punjab, cotton lint traded at Rs 2,475-Rs 2,480/maund at Fazilka, Kotakpura, Muktasar and Bathinda; Rs 2,475-Rs 2,480/maund at Malot and Gidarbha; Rs 2,465/maund at Abohar; Rs 2,460/maund at Manasa; and at Rs 2,495-Rs 2,500/maund at Rampura, Barnala and Budhaldha.

Cotton lint traded at Rs 2,340-Rs 2,405/maund in Haryana and at Rs 2,230-Rs 2,340/maund in Rajasthan.

Cotton lint trades steady-to-higher
14 May 2008 4:08 pm




Mumbai - Spot cotton lint prices were called steady-to-slightly-higher amid consistent buying from millers at the markets across western India Wednesday.

At Kadi in Gujarat, cotton lint S-6 A-grade was quoted between Rs 22,500-Rs 23,200/candy while average-grade traded at Rs 22,000-Rs 22,700/candy. Kapas got offered at Rs 540-Rs 610/maund.

In Vidarbha region of Maharashtra, the 28-mm cotton lint traded at Rs 21,600-Rs 22,200/candy; 29-mm cotton lint traded at Rs 22,300-Rs 22,800/candy. Around 7,000 bales arrived in the State today.

At Sendhwa market in Madhya Pradesh, the 28-mm cotton lint traded at Rs 22,000-Rs 22,500/candy; 29-mm cotton lint traded at Rs 22,500-Rs 23,000/candy; and 30+ mm cotton lint at Rs 23,500/candy.

Firm trend on cotton market

KARACHI (May 15 2008): Cotton prices hit all-time high at Rs 3,900 first time in history of cotton trading, dealers said on Wednesday.Nearly 600 bales of deals finalised for forward delivery contract, 200 bales done at Rs 3,700, 200 bales at Rs 3,800 and 200 more bales done at Rs 3,900 for 25-30 June 2008 for forward delivery contract, dealers said. All 600 bales of cotton were from Muridwalla (District Faisalabad).

The KCA official spot rate was unchanged at Rs 3400, dealers said. According to the market sources, mills' demand increased to meet their urgent needs. Commenting on the steadier trend in the prices, some cotton analysts were of the view that appreciation of dollars is encouraging the mills to keep moving.

Most of the spinners were trying to prepare value-added to raise their profits by enhanced export figure, they said. In the meantime, the ginners were happy as price of best quality is steeply going up and they have nearly 400,000 bales to dispose off, they said.

The trend in the market is firm also partly because of upward trend in the NY cotton market during the last many sessions but on Tuesday, cotton futures drifted lower on investment liquidation in line with weakness in other commodity markets, and some analysts feel the market is poised to gyrate over the next few weeks.

ICE Futures' July cotton contract fell 0.91 cent to close at 70.90 cents per lb, trading from 70.80 to 72 cents. The new-crop December cotton contract sank 0.90 cent to 79.62 cents, dealing from 79.50 to 80.55 cents. Volume traded in the July contract at 3:10 pm (1910 GMT) was 5,237 lots, while December's tally was 1,193 lots.

China may face sliding trend in its exports due to appreciation of its currency (yuan). Additionally, it is also shifting or transferring its labour or work force to increase its agriculture production, they said.

The following deals were reported as some 1100 bales from Sadiqabad sold at Rs 3450, 600 bales for Dolat Pur at Rs 3600, 1000 bales from Khanewal at Rs 3500, 1400 bales from Mailsi at Rs 3450-3575, 560 bales from Kabirwala at Rs 3500, 1300 bales from Jatoi at Rs 3350, 1200 bales from Bahawalpur at Rs 3250-3350, 400 bales from Rajanpur at Rs 3300, 2962 bales from Mirpur at 3275-3300, 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 3400.00 50 3450.00
-----------------------------------------------------------
Equivalent
-----------------------------------------------------------
40 Kgs 3644.00 50 3694.00
================================================== =========

World Indices
Index Closing Chg%
DJIA 12,898.38 0.52
Nasdaq 2,496.70 0.06
S&P 1,408.66 0.40
FTSE 6,216.00 0.10
DAX 7,083.24 0.33
CAC-40 5,055.24 1.13
Nikkei 14,118.55 1.20
H.Seng 25,533.48 0.08
Sensex 16,978.35 1.35
Updated at 5:00 am Pst

NY Closing
Euro 0.6464
Sterling 0.5138
Swiss Franc 1.0547
Yen 105.08
Gold 866.50
Cotton 69.990
Oil 124.22

The Rupee [pakistan]
Interbank closing rates for dollar on Wednesday.
Buying Rs 68.60
Selling Rs 68.80
Dollar higher