Cotton

Cotton lint trades up in north India
20 May 2008 3:13 pm

Abohar - Spot cotton lint continued to trade higher by Rs 10-Rs 15/maund amid consistent buying from millers at major markets across north India Monday. Mills want to complete covering as soon as possible looking at the ending stocks.

Meanwhile, the Cotton Advisory Board (CAB), in its latest data, has increased the estimate of cotton exports from India during 2007-08 from earlier 65 lakh bales to 85 lakh bales. India had exported 58 lakh bales the previous year. The revised estimates released by the CAB in its Saturday's meeting also expect cotton production in the country to go up by five lakh bales to 3.15 crore bales.

Across Punjab, cotton lint traded at Rs 2,520-Rs 2,530/maund at Fazilka, Kotakpura, Muktasar and Bathinda; Rs 2,520-Rs 2,530/maund at Malot and Gidarbha; Rs 2,511/maund at Abohar; Rs 2,505/maund at Manasa; and at Rs 2,545-Rs 2,550/maund at Rampura, Barnala and Budhaldha.

Cotton lint traded at Rs 2,360-Rs 2,425/maund in Haryana and at Rs 2,300-Rs 2,375/maund in Rajasthan.

Prices turn higher on cotton market

KARACHI (May 21 2008): Prices were firm on the cotton market on Tuesday as in the late evening on Monday, prices touched the historical level at Rs 4,000, dealers said. The Karachi Cotton Association official spot rate was unchanged at Rs 3475, they said.

According to the chairman of the Karachi Cotton Broker Association, Naseem Usman, the price of high quality cotton has reached to record Rs 4,000 per mound countrywide. Senior cotton trader Nasim Usman said that higher rate of dollar caused price hike in cotton crops.

On Monday, in ready business, some 200 bales of Sultanabad done at record level of Rs 4,000. He also said that shortage of high quality cotton also a cause behind the increase in the price. It came under observation that despite availing a lot of facilities from the government to boost the textile items, the exporters were not able to meet the export target, instead they make hue and cry over the shortage of crop. In fact, this factor is based on the anxiety among the mills due to rise in the prices, other brokers said.

The interest thing to note is that the government says it is giving all necessary incentives and basic facilities to the cotton growers to achieve the target. They said and observed that due to mealy bug and other farm related viruses attacks on the standing cotton is the main hurdle in meeting the target. The cotton growers said that pesticide sprays on the crop is not enough, further steps are required by the government to increase the production.

Because, they said this time short supply of irrigation water may be a leading factor, if the country does not achieve the desired target. The following deals were reported as some 1000 bales of cotton from Sadiqabad finalised at Rs 3450 and same figure from Harapa at Rs 3750, 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 3,475.00 50 3,525.00
Equivalent-------------------------------------------------
40 Kgs 3,724.00 50 3,774.00
================================================== =========

Spot cotton lint marches ahead
21 May 2008 3:36 pm



Mumbai - Spot cotton lint prices moved up further Monday as millers are buying hastily looking at the condensing arrivals at the markets across western India.

Meanwhile, the Cotton Advisory Board (CAB), in its latest data, has increased the estimate of cotton exports from India during 2007-08 from earlier 65 lakh bales to 85 lakh bales. India had exported 58 lakh bales the previous year. The revised estimates released by the CAB in its Saturday's meeting also expect cotton production in the country to go up by five lakh bales to 3.15 crore bales.

At Kadi in Gujarat, cotton lint S-6 A-grade was quoted between Rs 24,000-Rs 24,500/candy while average-grade traded at Rs 23,500-Rs 24,000/candy. Kapas got offered at Rs 550-Rs 640/maund. Around 9,000 bales of cotton arrived in the State today.

In Vidarbha region of Maharashtra, the 28-mm cotton lint traded at Rs 23,000-Rs 23,500/candy; 29-mm cotton lint traded at Rs 23,600-Rs 24,000/candy. Around 4,000 bales arrived in the State today.

Yarn Prices on the International Market (Statistical Report)

20 May 2008 - International yarn prices further rose in the past week on the cotton and polyester markets. Higher raw material costs are explaining the new increase in India and Pakistan. By contrast, viscose fiber prices continued falling, therefore pushing down yarn prices to lower levels, as reflected by the series of effective transaction prices reviewed by EmergingTextiles.com. Activity is again weakened as a result of higher prices and a slowdown in textile production in Asia.

China Apr Cotton Imports up 22%
22 May 2008 12:56 pm



SHANGHAI (Dow Jones)--China's cotton imports in April rose 22% on year to 263,301 metric tons, the General Administration of Customs said Thursday.

Cotton imports in January-April totaled 790,814 tons, up 9% on year, Customs said.

Following are tables of import and export data for January 1-April 30for cotton from leading exporting origins to China and from China to selected destinations, with data provided by China's General Administration of Customs. (All figures in metric tons unless otherwise stated.)

Table of Imports: Countries Apr Change Jan-Apr Change of Origin in Tons on Year in Tons on Year Cotton Total 263,301 +22% 790,815 +9% India 120,053 +64% 415,440 +24% USA 94,271 +11% 228,383 +28% Uzbekistan 21,344 -30% 37,559 -68% Burkina Faso 8,227 +10% 22,782 -38% Mexico 1,310 -37% 15,326 +124% Mali 3,615 +158% 16,841 +742% Cameroon 500 -82% 7,991 +5% Brazil 628 +2% 6,916 +589% Australia 2,291 -24% 8,483 -20% Benin 8,952 +86% 13,325 +25% Table of Exports: Destinations Apr Change Jan-Apr Change in Tons on Year in Tons on Year Cotton Total 962 -63% 2,387 -68% Japan 134 -44% 428 -75% Thailand 492 +148% 693 +248% North Korea 336 +12% 336 -37%

Cotton lint trades up in north India Rs 2600.

22May 2008 3:13 pm


Abohar - Spot cotton lint continued to trade higher by Rs 10-Rs 15/maund amid consistent buying from millers at major markets across north India Monday. Mills want to complete covering as soon as possible looking at the ending stocks.

Meanwhile, the Cotton Advisory Board (CAB), in its latest data, has increased the estimate of cotton exports from India during 2007-08 from earlier 65 lakh bales to 85 lakh bales. India had exported 58 lakh bales the previous year. The revised estimates released by the CAB in its Saturday's meeting also expect cotton production in the country to go up by five lakh bales to 3.15 crore bales.

Across Punjab, cotton lint traded at Rs 2,600-Rs 2,610/maund at Fazilka, Kotakpura, Muktasar and Bathinda; Rs 2,590-Rs 2,595/maund at Malot and Gidarbha; Rs 2,575/maund at Abohar; Rs 2,580/maund at Manasa; and at Rs 2,625-Rs 2,630/maund at Rampura, Barnala and Budhaldha.

Cotton lint traded at Rs 2,390-Rs 2,455/maund in Haryana and at Rs 2,340-Rs 2,415/maund in Rajasthan.

Cotton prices scale new heights

LAHORE (May 23 2008): Relentless fall in value of the Pakistani rupee against the United States dollar and dwindling local stocks have resulted in further increases in lint prices attaining new peaks. The deterioration of the Pakistani rupee value was amply clear when the interbank selling rate reached Rs 69.50 on Thursday and the open market rate was quoted at Rs 70.40 to the dollar.

Leftover lint from the current crop (2007-2008) stocks still lying unsold with the ginners are now being estimated to be hardly 200,000 (Two hundred thousand bales) thus decreasing the quantity of floating stocks in the market. The dollar is quite responsible for the record rise in cotton prices for both current crop and also new crop cotton (2008-2009) for forward delivery.

These developments in the money market and lack of cotton inventories coupled with increasing uncertainty on fundamental issues including restoration of deposed judges between leading political partners in the country have tended to harden cotton prices catapulting them to record levels.

It was natural that under these bullish circumstances the Karachi Cotton Association (KCA) increased its ex-gin price for grade 3 cotton from Rs 3,400 per maund (37.32 kgs) just eight days ago to Rs 3,500 per maund on Thursday. The overall ready price situation in the market is thus unmistakably tight.

From the current crop (2007-2008) 200 bales of superior cotton from Sultanabad in Sindh reportedly sold last Tuesday at Rs 4,000 per maund (37.32 kgs) in ready sale creating a new record. On Thursday a sale of 2,000 bales from Tibba Sultanpur in Punjab was also recorded at Rs 4,000 per maund and later 1,200 bales from Khanpur also sold at Rs 4,000 per maund which also created a new record.

Lint rates in Sindh reportedly ranged from Rs 3,450 to Rs 3,800 per maund (37.32 kgs), while in the Punjab they were said to have ranged between Rs 3,450 to Rs 4,000 per maund. Generally speaking, lint prices in Pakistan have risen by at least Rs 1,000 per maund since the beginning of this season (2007-2008).

Ready sale figures for cotton on Thursday also include a sale from current crop of 400 bales from Punjab by an exporter to a textile mill at Rs 3,750 per maund (37.32 kgs), while 1,100 bales from Rahimyar Khan also from Punjab and 1,200 bales from Mirpur Mathelo in upper Sindh (k-68) reportedly sold at Rs 3,800 per maund each. These sales prices for cotton show that cotton prices have gone up by Rs 100 to Rs 200 per maund since last week.

Recently reports have been received that due to very enthusiastic sowing and also considerable increase in irrigation water the prospects for a larger cotton crop next year (2008-2009) have materially improved.

Textile markets are now reporting considerable increase in yarn and fabric prices. In fact, users of grey cloth in Faisalabad claim that fabric prices have shot up rapidly. It may be noted, however, that increase of textile prices like other goods and commodities in Pakistan is a corrollary to depreciation of the Pakistani rupee against the greenback and inflationary pressures at home.

The increase in global price of crude oil to nearly US dollars 132 per barrel on last Wednesday will automatically increase the price of polyester and other fibers, which are hydrocarbon products. Thus the prices of raw cotton and textiles are also likely to go up correspondingly.

Cotton traders said that the State Bank of Pakistan (SBP) announced on Thursday an increase in bank interest rate by 1.5 percent (one and a half percent). State Bank also reportedly imposed a 35 percent margin on all letters of credit for imports except food and oil. This appears a bid to pacify the Pakistani rupee and rein it to manageable limits and also curb unnecessary imports into the country.

Trade is mostly unwilling to guess what could be the possible output of the forthcoming cotton crop (2008-2009) in Pakistan for which the government had earlier fixed a production target 14.4 million domestic size bales which is usually given on farmgate basis.

Textile sources say that last season (2006-2007) they consumed nearly 16 million domestic size bales but this year (2007-2008) consumption could go down to 14.5 or 15 million bales because of lack of gas or furnace oil which is used by the mills to generate their own power. Power shortage this year has been an impediment in increasing textile output and sales.

Regarding new crop (2008-2009) in Pakistan, textile sources think that output should go up because more acreage has been planted and irrigation water availability has also increased. The anticipated output could range between 13 and 14 million domestic size bales on an ex-gin basis unless pests or other bugs decrease the yields.

China’s cotton cloth imports and exports (6:13 GMT 23rd May, 2008)
China Cotton Index (4:10 GMT 23rd May, 2008)
CNCE mixed again (3:37 GMT 23rd May, 2008)
China’s yarn exports and imports rise (3:09 GMT 23rd May, 2008)
President’s farm bill veto overridden by Senate (22:08 GMT 22nd May, 2008)
Lower turnover on The Seam (21:09 GMT 22nd May, 2008)
New York futures end on negative ground (19:21 GMT 22nd May, 2008)
Most No. 2 cotton futures sharply lower at midday (17:11 GMT 22nd May, 2008)
April US raw cotton consumption (13:47 GMT 22nd May, 2008)
Cool temperatures forecast for SJV, storms predicted for Arizona (13:04 GMT 22nd May, 2008)
Indian spinners unhappy about cotton supply (12:53 GMT 22nd May, 2008)

Cotton lint trades up in north India
23 May 2008 5:19 pm



Abohar - Spot cotton lint continued to trade higher by Rs 10-Rs 15/maund amid consistent buying from millers at major markets across north India Monday. Mills want to complete covering as soon as possible looking at the ending stocks.

Across Punjab, cotton lint traded at Rs 2,625-Rs 2,635/maund at Fazilka, Kotakpura, Muktasar and Bathinda; Rs 2,620-Rs 2,630/maund at Malot and Gidarbha; Rs 2,611/maund at Abohar; Rs 2,605/maund at Manasa; and at Rs 2,645-Rs 2,650/maund at Rampura, Barnala and Budhaldha.

Cotton lint traded at Rs 2,560-Rs 2,525/maund in Haryana and at Rs 2,400-Rs 2,475/maund in Rajasthan

Spot jumps by Rs 100, no deal in ready business

KARACHI (May 24 2008): The official spot rate was again raised for the second day in a row by a big stride of Rs 100, on imposition of 35 percent Letter of Credit (L/C) margin on imports except on oil and some other food items, dealers said on cotton market on Friday. The Karachi cotton Association official spot rate was jumped by Rs 100 at Rs 3600, dealers said.

Some brokers said that the prices went up sharply following the steps taken by the central bank on Thursday, these measures were expected to bring down the inflation rate.

Both buyers and sellers were on the sidelines just to see the impact of the corrective measures announced by the Governor of the State Bank of Pakistan (SBP), they said.

The effects of announced measures would take little time to come up because after implementation of these steps, it will be clear as to how the things are taking shape, they said.

On Thursday, cotton futures settled lower on investor fund sales inspired by a sell-off in other commodity markets, with brokers saying the momentum from the downturn may lead to further losses in the market.

ICE Futures' July cotton contract fell 0.99 cent to close at 69.99 cents per lb, trading from 69.76 to 71.75 cents. The new-crop December cotton contract lost 1.16 cents to 78.67 cents, dealing from 78.41 to 80.50 cents. Volume traded in the July contract at 3:01 pm (1901 GMT) was at 15,454 lots while December's tally was at 5,347 lots.No deal was reported in the ready business, they added.

================================================== =========
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 3,600.00 50 3,650.00
Equivalent-------------------------------------------------
40 Kgs 3,858.00 50 3,908.00
================================================== =========