Cotton

New York Close (vs. previous week)
Jly08 66.52 +0.78 Mch08 80.69 +0.66
Oct08 71.52 +0.36 May09 82.34 +0.67
Dec08 74.95 +0.58 Jly09 83.79 +1.22
.................................................. .................................................. ..................
Cotlook A Index (FE)
2007/08 72.60 -0.15
2008/09 78.95 -1.30
U.S. Exports Net Sales
Accumulative 14,403,500
Weekly 555,400
China 352,800
Turkey 48,300
Vietnam 42,900
Wkly Shipments 243,400
CCC Loan Outstanding
7,240,158 -303,782
NYK Open Interest
274,599 +4,866
Net Speculators’ Position
Long 4.8% -2.3%
NYK Certificated Stocks
1,576,785 +29,721
Awaiting review 62,965
.................................................. .................................................. ...............
U.S. Exports – Impressive weekly net sales at 555,400 bales occurred with the recent drop in NYK and
should continue over the next several reports, provided the market stays at lower levels. The lack of
registrations beyond July 31 for the new crop at 22,600 bales implies that everyone is selling for prompt
shipment, but with shipments at a dismal 243,400, it will be hard to reach USDA’s 14.2 million. Shippers
are doing their best to move cotton, but face challenges from lack of space, shortage of containers,
congestion at ports, rising fuel costs for both inland and shipping rates
.................................................. .................................................. ..........
U.S Crop 2008/09 – The weekly progress report, planting activities in all
states are back in a normal range with the total at 83%, compared to last
year and the five-year average of 80% and 84%, respectively. Hot and dry weather settled over most of
Texas stifling the seed germination of the young plants. Depending on the recent rainfall on the dry-land
acres, some areas may experience heat stress. The heat may allow the formation of some evening
showers, but will not provide much relief. California producers are facing the second year of a drought
and the Governor has declared a state of emergency. With a lack of local rains and a low snow pack, the
Federal water districts are further restricting allocations by 5%, which had already been cut back 45%
earlier in the year. Many farmers are running short of water and those that sought to buy water from
other sources will most likely not be delivered now.

New York cotton settles firmer
NEW YORK (June 07 2008): Cotton futures finished firmer on Friday on investment fund buying sparked by a rally in other commodity markets and fibre contracts may use follow-through interest to punch higher next week, brokers said. The now benchmark December cotton contract shot up 1.94 cents to close at 74.95 cents per lb, ranging from 73 to 75.76 cents.

The spot July contract gained 1.87 cents to end at 66.52 cents, trading from 64.56 to 67.39 cents. Volume in the December contract stood at 16,892 lots at 3:21 pm EDT (1921 GMT) while July volume was at 16,826 lots. "If you (eventually) close above Monday's high, then you've got a good shot at another leg up," said Mike Stevens, an analyst for brokers SFS Futures in Mandeville, Louisiana. The now-key December cotton contract hit a session peak of 75.41 cents on Monday.

Stevens said the market also received support from talk of dry, hot weather in Texas, which is expected to plant more than half of all US cotton in the 2008/09 marketing year (August/July). Forecasters DTN Meteorlogix said Texas should be mostly dry through the weekend and into Tuesday, with temperatures ranging from 62 to 94 degrees Fahrenheit (17 to 34 Celsius).

"Soil moisture is being badly depleted with conditions of the last few days. With no replant moisture, at least some cotton acreage is being lost almost daily under these conditions," a report this week by Stevens said. The market is also look at when index funds actively begin rollover action before deliveries commence June 24.

Separately, the trade is now looking toward the US Agriculture Department's monthly supply/demand report on Tuesday and then the USDA's annual plantings report on June 30. Traders said resistance in the December contract was at 75.41 cents, with support pegged at 73.50 and 73 cents.

Volume traded Thursday in the cotton market hit 34,977 lots, exchange data showed. Open interest in the cotton market rose 1,457 lots at 274,599 lots as of June 5, it added.

Subdued business on cotton market

KARACHI (June 07 2008): Small business was seen on the cotton market on Friday as mills were active to cover the forward buying in anticipation of short crop in the coming season, experts said. The Karachi cotton Association (KCA) official spot rate was unchanged at Rs 3700, dealers said.

It was pre-assumption that production may be less than the target of 14.1 million bales and spinners continued buying as they were also assuming that the prices will maintain stability. So they preferred to buy cotton at the prevailing rates as ginners were not showing change in their attitudes toward the prices, they said.

They have just nearly 2 million bales to dispose of and all of fine quality, they added. On Thursday, the cotton futures ended higher. The now benchmark December cotton contract rose 0.15 cent to finish at 73.01 cents per lb, ranging from 72.31 to 73.90 cents. The spot July contract added 0.33 cent to end at 64.65 cents, trading from 63.71 to 65.37 cents.

Volume in the December contract stood at 11,205 lots at 3:10 pm EDT (1910 GMT) while July volume was at 11,424 lots. The following deals were reported : some 1400 bales of cotton from Mirpur Mathelo sold at Rs 3825, 2200 bales from Shujaabad and Nasirabad at Rs 3975, 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 3,700.00 50 3,750.00
Equivalent-------------------------------------------------
40 Kgs 3,965.00 50 4,015.00
================================================== =========

Pakistan eager to conclude Doha round: Dr Manzoor

ISLAMABAD (June 07 2008): Pakistan's Permanent Representative and Ambassador to WTO, Dr Manzoor Ahmad on Friday said that being textile and cotton exporter, we are very positively and constructively interested in concluding the Doha Round.

He said if the round was not finished this year it might be extended for few months and Pakistan would emerge a loser as its products were facing high tariffs in developed countries' market particularly in the US and EU.

While speaking at an interactive meeting with civil society organisations, held by Sustainable Development Policy Institute (SDPI), Islamabad, Dr Manzoor Ahmad briefed the participants about the Doha Round negotiations. He also highlighted the implications and benefits of some decisions of the negotiations for Pakistan.

He elaborated on recent developments in the Doha Round negotiations in the areas of agriculture, industry and services. After giving the background of WTO and different rounds of its negotiations, he highlighted the implications and benefits of some decisions of the negotiations for Pakistan.

Welcoming the comments from civil society, the envoy called for quality research and feedback on the issues of Pakistan's interest. He said that the reduction in tariffs could lead Pakistan towards more agricultural value-addition, which is presently very low.

Expressing optimism, Dr Manzoor said that the greater market access of textile and clothing sector under the current round of negotiations on industrial goods would benefit Pakistan a lot. He said that these benefits from market access should be seen and calculated in terms of the whole package at the conclusion of the round.

7.6 million tonnes cotton output for 2007/2008 season
06/05/08

COTTONCHINA China National Bureau of Statistics (NBS) released 2007 State Economy and Social Development Report by yesterday.
According to the report, China's cotton output in 2007 season was 7.6 million tonnes, 1.3% increase from the previous season. Also, cotton planting area in 2007 was 5.59 million hectares, up by 70,000 from the previoius season.

china cotton rates.

2008-06-06
MA0806 14152 -6
MA0807 14283 -6
MA0808 14437 1
MA0809 14586 -19
MA0810 14588 7
MA0811 14581 3
MD0806 13027 13027

CNCE Forward trading:Cotton price settled mixed with light trading
06/06/08

COTTONCHINAThere were 6320 tons of cotton concluded on CNCE's e-market, 4260 tons less than the previous session. All cotton traded today was type 229. Open interests reduced 300 tons and cumulative open interests totaled 84080 tons.

CNCE market opened slightly higher as the New York future price gained some ground. Cotton price oscillated to lower due to the lacking support. Finally, all contract settled with a few changes. MA0806 lost by 6 yuan to 14152 yuan, MA0808 gained by 1 yuan to 14437 yuan.

The unchanged CC Index (China Cotton Index) is 13848 Yuan on June 6. US dollar exchange rate today stands at US $ 1.00 = RMB 6.9238.

ICE cotton settles sharply higher
7 Jun 2008 11:28 am

New York - ICE Futures US cotton settled sharply higher Friday as oversold futures caught on to a wide-based commodities rally rooted in the weaker US dollar and crude gains.

July futures settled 187 points higher at 66.52 cents a pound and the October contract settled up 222 points at 71.52. For the week, the July contract has gained 78 points.

Traders expect futures to move higher in the coming week due to the market's overbought state and the possibility of additional commodities gains and US dollar weakness.

Cotton opened higher and moved back and forth near unchanged in early trade. Futures began to stride higher as a crude oil rally incited general commodities gains amid the slipping US dollar. July made a weekly high at 67.39 in later trading and pared gains ahead of the close in concert with outside markets.

The oversold market may see follow-through buying into next week, said Rob Kurzatkowski, futures analyst at optionsXpress in Chicago. Futures closed above 66.50 resistance basis July, signaling upside moves in coming sessions, analysts said. "There's really no resistance to speak of until we get up to 69 (cents basis July)," Kurzatkowski said.

Cotton prices face opposing fundamentals in upcoming months as trading focus shifts to the smaller new crop and less-than-favorable growing conditions in light of abundant supply for the 2007-08 crop amid lackluster demand, said Boyd Cruel, senior softs analyst at Alaron Trading in Chicago.

Traders are looking ahead to the June monthly USDA crop production and supply/demand report to be released Tuesday at 8:30 a.m. EDT (12:30 GMT).

ICE daily cotton stocks increased by 2,774 480-pound bales Thursday to total 1.576 million bales with 62,965 awaiting review.

ICE cotton open interest increased by 1,457 positions Thursday to total 274,599 lots, the exchange reported.

Volume was estimated 31,306 lots. In options, approximately 6,130 calls and 5,886 puts traded, according to exchange data.

Cotton lint up on demand in Gujarat
7 Jun 2008 1:43 pm

Mumbai - Cotton lint prices were quoted higher amid fresh demand from millers at the spot markets across Gujarat Saturday. Prices, however, remained unchanged in Maharashtra and Madhya Pradesh.

Traders say, market sentiments were under-pressure following selling by exporters during the last few days. Exporters sold around two lakh bales of cotton lint in the domestic market that were procured by south Indian millers. Forward deals have also been affected by the good progress of monsoon.

Meanwhile, cotton sowing has begun in Maharashtra following good rainfall in most parts in the State. Whereas, Gujarat and Madhya Pradesh are witnessing limited sowing of the crop.

At Kadi market in Gujarat, cotton lint S-6 A-grade was quoted at Rs 24,500-Rs 24,700/candy while average-grade traded at Rs 23,800-Rs 24,200/candy. Kapas got offered at Rs 670-Rs 685/maund.

In Vidarbha region of Maharashtra, the 28-mm cotton lint traded at Rs 23,200-Rs 23,600/candy; 29-mm cotton lint traded at Rs 23,700-Rs 24,200/candy.

At Sendhwa market in Madhya Pradesh, the 28-mm cotton lint traded at Rs 23,200-Rs 23,700/candy; 29-mm cotton lint traded at Rs 23,900-Rs 24,500/candy; and 30+ mm cotton lint at Rs 24,600-Rs 24,800/candy.

Cotton lint improves in north India
7 Jun 2008 1:23 pm

Abohar - Spot cotton lint prices rose Rs 10-Rs 20/maund amid some buying by millers at the lower level at major markets across north India Saturday. The reducing stocks are supporting the spot prices.

Across Punjab, cotton lint traded at Rs 2,620/maund at Fazilka, Kotakpura, Muktasar and Bathinda; Rs 2,610/maund at Malot and Gidarbha; Rs 2,610/maund at Abohar; Rs 2,605/maund at Manasa; and at Rs 2,640/maund at Rampura, Barnala and Budhaldha.

Cotton lint traded at Rs 2,520/maund in Haryana and at Rs 2,400/maund in Rajasthan.