Cotton

U.S. Apparel Import Prices in January-February 2008: China vs. India, Indonesia, Vietnam, Bangladesh, Mexico and CAFTA

23 April 2008 - U.S. apparel import prices generally rose in a large number of categories in the first two months of 2008, especially for wool and man-made fiber products. China further raised its prices in most important categories like shirts and trousers, leaving the lower end of the market to a surging Vietnam. India is more directly confronted with China although offering lower prices, as reflected by our series of price tables

Cotton lint steady in west India
8 May 2008 5:40 p m

Mumbai - Spot cotton lint priced lacked movement amid normal business at the spot markets across western India Wednesday. Forward deals were prominently noticed in the market despite sluggish trade.

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 610/maund. The State recorded arrivals of 16,000 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 8,000 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.

Trading in futures contracts for cotton resumes

KARACHI (May 09 2008): The cotton hedge trading has been resumed on Karachi Cotton Exchange after a gap of 32 years with the finalisation of a deal of 200 bales of the 2008-09 crop for August delivery. Market sources told Business Recorder on Thursday that traders and textile mills were anticipating that new cotton crop would also be short of demand.

Despite a Federal government ban since 1976, they (millers and traders) have, however, started future trading on the Karachi Cotton Exchange (KCE) to acquire their required cotton before the crop at minimum rate. The deal has been finalised between a miller and a Sindh base-ginning factory located at Mirpurkhas.

In line with the deal, the ginning factory will deliver 200 fresh bales worth Rs 3.3 million of the new season crop on August 15. However, this deal has been struck in violation of a ban, as hedge trading was suspended through an administrative order by the government of Pakistan in 1976, market sources claimed.

In addition, the deal has also been finalised at the historical price of Rs 3,800 per 40 kilograms with an upsurge of Rs 100 per 40 kilograms as against previous highest rate at Rs 3,700 per 40 kilograms. An official of Karachi Cotton Association (KCA) board of directors has also confirmed the deal, and said that during the next few days more future contracts were expected.

"A deal of 200 bales for the August delivery has been registered on KCE and it would be mentioned in the Friday's KCA daily cotton market report," said Ghulam Rabbani, a leading trader and member of KCA board of director. He said that future trading in cotton was introduced in the KCA in 1934, which was effectively and efficiently managed by the KCA until 1975-76. However, following the nationalisation of export trade and ginning factories in 1973, the hedge trading was suspended through an administrative order of the government of Pakistan in 1976.

"The matter of need, utility, benefits and advantages of hedge trading in cotton had been affirmed and re-affirmed by the various officials. Later, a hedge contracts inquiry committees was set up by the government," the board member said.

On the recommendations of the committee, the Federal cabinet meeting held on March 24, 2005 decided to resume cotton hedge trading on the KCE under the Cotton Act 1957. However, despite the several reminders, the official announcement had not issued till date, he said. "The KCA has full and comprehensive infrastructure and adequate by-laws for hedge trading in cotton inclusive of storage capacity of cotton bales at Karachi with 320 licensed cotton brokers," Rabbani said.

He urged the government to allow resumption of hedge trading in cotton under the aegis of the Karachi Cotton Association, otherwise the traders would continue their future trading without any permission. "It is not possible for us to stop the brokers and traders, besides mills from dealing in future trading, as due to the current year's experience, they are already conscious", he said.

He said that government had already failed to provide a platform for hedge trading, therefore, the traders, ginning factories and the millers had started future trading in the KCA. The next cotton crop is also expecting a shortfall and is estimated to be around 11 million bales subject to good weather conditions, he said.

Cotton imports seen lower as textile industry stagnates
(Xinhua)
Updated: 2008-05-09 10:27

China will import a smaller quantity of cotton during the sector's fiscal year 2007, which ends in August, an industry official said on Wednesday.
Cotton imports will fall because the stagnant textile industry needs less yarn, Shi Jianwei, vice president of the China Cotton Association, told a symposium on the development of the cotton industry. The event was held in conjunction with an international cotton trade fair in Hangzhou, the capital of eastern China's Zhejiang Province.
Shi estimated fiscal 2007 cotton imports at 2.6 million tons, which would fall below the anticipated amount of 2.8 million tons.

He also estimated that China used 6 million tons of cotton, including 1.32 million tons of imports, to produce 11.85 million tons of yarn from September through March, up 11.5 percent from the previous comparable period.

According to the National Bureau of Statistics, China grew 5.59 million hectares of cotton and harvested 7.6 million tons of the fiber in the 2007 fiscal year.

Shi predicted there would be a slight increase in the sown area of cotton for fiscal 2008 but cotton output would remain at the production level of fiscal 2007.

China imported a record amount of 4.11 million tons of cotton in fiscal 2005 but only 2.28 million tons in 2006.

India overtook the United States as China's largest cotton supplier in fiscal 2007.

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ICE cotton edges higher in thin trade

New York - ICE Futures US cotton posted moderate gains Thursday as the market slowly climbed from session lows in choppy, uninspired trade. July cotton settled 48 points higher at 70.85 cents a pound in nybot.

08/05 17:40 Cotton lint steady in west India

08/05 17:38 Cotton lint slides in north India

08/05 09:58 Indian cotton prices up on low arrivals,...

07/05 13:37 Cotton arrivals at 2.96 cr bales: CCI

ICE cotton edges higher in thin trade

9 May 2008 10:01 am


New York - ICE Futures US cotton posted moderate gains Thursday as the market slowly climbed from session lows in choppy, uninspired trade.

July cotton settled 48 points higher at 70.85 cents a pound and October futures ended up 71 points at 76.38 cents.

Futures may take some direction from cotton production and from supply and demand reports to be released Friday, analysts said.

July futures see-sawed in early trading between 70.13 cents and 70.50 cents before the range expanded after the release of weekly US net cotton sales at midday. Sales decreased in the week to May 1 to 568,100 running bales from 649,900 bales the week before, while exports increased to 291,800 running bales from 197,500 the previous week. Choppiness continued until July found support at 70.15 cents and pushed higher ahead of the close. Futures must break out of the 68.52-72.43 cents' range established May 1 to develop fresh momentum, said Mike Stevens, futures analyst at SFS Futures in Mandeville, La.

However, some traders may be waiting until the release of the May US Department of Agriculture crop production and supply and demand reports to determine their next move, said Sharon Johnson, senior cotton analyst at First Capitol Group in Atlanta.

The reports, to be released Friday at 8:30 a.m. EDT, will include primary estimates for 2008-09 crop production and supply and demand. The reports are expected to be bearish, with a decreased 2007-08 US exports as that reduction is shifted into ending stocks, analysts said. US production and consumption data are projected unchanged, they said.

ICE daily cotton stocks increased by 24,401 480-pound bales Wednesday to total 1.3 million bales with 129,307 awaiting review.

ICE cotton open interest increased by 327 positions Wednesday to total 248,306, the exchange reported.

Volume was estimated at 8,684 lots. In options, approximately 3,926 calls and 4,315 puts traded, according to exchange data

Cotton lint stagnant in west India

9 May 2008 3:42 pm

Mumbai - Spot cotton lint priced failed to witness movement amid normal business at the spot markets across western India Friday. Ginners are not getting the opportunity to hike prices as deals have almost stopped at the current higher prices.

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 610/maund. The State recorded arrivals of 15,000 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 7,000 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.

Cotton lint firm in north India

9 May 2008 3:40 pm

Abohar - Spot cotton lint prices remained steady Friday after yesterday's slight slide at the markets across north India. Ginners are not ready to sell at lower prices looking at the less stocks.

Across Punjab, cotton lint traded at Rs 2,475-Rs 2,485/maund at Fazilka, Kotakpura, Muktasar and Bathinda; Rs 2,475-Rs 2,485/maund at Malot and Gidarbha; Rs 2,460/maund at Abohar; Rs 2,450-Rs 2,452/maund at Manasa; and at Rs 2,495-Rs 2,500/maund at Rampura, Barnala and Budhaldha.

Cotton lint traded at Rs 2,330-Rs 2,400/maund in Haryana and at Rs 2,220-Rs 2,330/maund in Rajasthan.

Next crop worries, high oil prices causing sharp rise in cotton rates

KARACHI (May 10 2008): Hovering worries about the size of cotton production for the new season and rising oil prices causing unrealistic rise in the prices, brokers said on the cotton market on Friday. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 3375.

Commenting on the hue and cry over the unrealistic rise in the cotton forward deals, some analysts said that it's a fact that cotton growers were facing so many problems due to irregularities in provision of irrigation water to the cotton crop areas.

Despite the persistence of water shortage, the government statements coming up with solid commitments that it is trying its best to provide all facilities including irrigation water and better farm insecticides to keep the crop safe for achieving desired target, they said.

Forward trading has started nearly 2-3 weeks ago, they said and that with the beginning of the future deals the market players were getting an impression that next crop may not be enough to meet the demand or likely to be short in production.

The base of the higher trend in the forward buying of cotton is pre-assumption about the size of next cotton crop, which may prove short-lived as the irrigation problem solve, the country may get the estimated figure. Additionally, timely rains and spray of insecticides would also help in achieving the better results, they said.

They were of the view that the other major dominating factor is sky rocketing oil prices in the world market, which are pushing the prices of all necessities at the ever-high levels. Only pre-assumption of short crop is not causing the rise in the forward deals, other factors including speculations were also behind the rise, they said.

In the meantime, the ginners were enjoying the moments as they have nearly four lakh bales of unsold cotton stock in anticipation of good benefits in days to come, they said adding that it appeared the ginners were not selling even at their psychological level.

The mills were paying higher rates for fine types as have to meet the exports needs, they said.

Continued surge in world oil prices plus prolonged irrigation problem, may cause the prices of cotton to go up in the short-run, they said. Market players must try to ward of speculative buying to maintain the process of trade smooth, they added.

On Thursday, cotton futures closed higher on investor short-covering as players put the final touches on tweaking positions ahead of Friday's government crop report, brokers said. ICE Futures' July cotton contract rose 0.48 cent to finish at 70.85 cents per lb, trading from 70.05 to 71.14 cents. The new-crop December cotton contract gained the same to 79.35 cents, dealing from 78.50 to 79.53 cents.

Volume traded in the July contract at 3:03 pm (1903 GMT) was at 6,061 lots while December's tally was at 1,835 lots. The following deals were reported : some 400 bales from Mirpur Mathelo sold at Rs 3250, 200 bales from Sadiqabad at Rs 3410, equal number bales from Mirpurkhas at Rs 3700 (August delivery) and same figure from the same station finalised at 3800 (August 15 delivery), they added.

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The KCA Official Spot Rate for Local Dealings in Pak Rupees
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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 3375.00 50 3425.00
Equivalent-------------------------------------------------
40 Kgs 3617.00 50 3667.00
================================================== =========

My07/08 Sales 563,900 (china 311,000)(turkey 53,000)(indonesia 38,800)

(thailand 31,600)(vietnam 22,400)(taiwan 19,400)
Sales My08/09 94,400 (mexico 78,100)
Pima 07/08 22,200 (ichina 13,100)(india 3,600)(germany 1,500)(bangladesh 1,500)
Pima Sales My08/09 1,500 (germany 1,500)
Exports My07/08 269,700 Pima 22,100