Cotton

China’s mills keep lower cotton inventory (9:35 GMT 15th May, 2008)
North China Plain to see more precipitation (8:29 GMT 15th May, 2008)
ZCE slides further (7:48 GMT 15th May, 2008)
China’s mills not impacted seriously by earthquake (7:39 GMT 15th May, 2008)
China Cotton Index (6:25 GMT 15th May, 2008)
CNCE moves further (3:31 GMT 15th May, 2008)
Business sales slow on The Seam (22:00 GMT 14th May, 2008)
US House passes conference Farm Bill (20:19 GMT 14th May, 2008)
Cotton futures settle lower in New York (19:32 GMT 14th May, 2008)
ICE cotton futures trading lower (16:33 GMT 14th May, 2008)
Dry weather reported in Uzbekistan (14:38 GMT 14th May, 2008)

Record high prices prevail on cotton market

LAHORE (May 16 2008): While ready prices for the current crop (2007-2008) were recorded at highest ever level at Rs 3,700 per maund (37.32 kgs) when 2,200 bales from Bagh-o-Bhar (Khanpur) in Punjab were sold last fortnight, sales of 200 bales of new crop (2008-2009) of Niab type from Mirpurkhas in Sindh were reported on 9th of May, 2008 at Rs 3,800 per maund for delivery up to the 15th of August, 2008.

Now a sale of 600 bales of new crop (2008-2009) cotton from Muridwalla (Faisalabad) has been reported from Rs 3,700 to Rs 3,900 per maund for delivery from the 24th of June to the 30th of June, 2008, 200 bales being at Rs 3,700 per maund, 200 bales at Rs 3,800 per maund and the balance 200 bales at Rs 3,900 per maund. These upward moving cotton prices show a definitely rising tendency of lint prices to levels never seen before.

The faltering Pakistan rupee values against the greenback which once touched Rs 70 per dollar recently in the open market and which was being quoted up to Rs 69 per dollar in the interbank currency market on Thursday has been very instrumental in increasing the rates of cotton. This scenario points to a tight price situation in the cotton market, which has risen in tandem with the loss of Pakistan rupee value. Till the evening, another sale of 400 bales of new crop from Chichawatni in Punjab was reported at Rs 3,700 per maund (37.32 kgs) for delivery on the 22nd of June, 2008.

Weather pundits have upgraded their forecasts for better rains and water supply by stating that the monsoons will shower precipitation a week earlier than originally envisaged. Whatever the maturity or ripeness of the new crop cotton may be, besides early sown areas in lower Sindh, boll formation and quicker development of cotton plant are already being reported from some areas of Punjab such as Chichawatni, Sahiwal, Mian Channu, Vehari, Arifwalla, Deapalpur, Okara, Pakpattan and Muridwala.

From the 580,000 bales of unsold cotton left with the ginners from the current crop (2007-2008) on the first of this month, now only an estimated 350,000 bales are left uncommitted with them which is barely one weeks consumption of the domestic spinners. Therefore, growers and ginners are keen to begin harvesting the new cotton crop (2008-2009) as early as possible to obtain higher prices for their seed cotton (kapas/phutti) and lint.

Ready cotton prices for the current crop (2007-2008) have risen almost by Rs 100 per maund within a fortnight. The ex-gin price of grade-III cotton which was fixed by the Karachi Cotton Association (KCA) at Rs 3,350 on the 3rd of this month has now been determined higher at Rs 3,450 per maund (37.32 kgs) on Thursday registering an increase of Rs 100 per maund. With relative improvement in textile performance in rupee terms, the exporters of textile products are looking forward to better profits. However, open end spinners and mills not exporting their textiles remain in problem.

Political uncertainty in Pakistan took a serious turn on last Tuesday when federal ministers from Muslim League (N) resigned from the cabinet due to differences on the modus operandi with which the judges of the various courts including the High and the Supreme Courts will be restored to their previous positions. Therefore, most business in Pakistan is now being conducted in an uncertain atmosphere, but buying has picked up perceptively on the cotton market.

General price idea of cotton from the current crop in Sindh reportedly ranged from Rs 3,300 to Rs 3,600, where as in Punjab from Rs 3,300 to Rs 3,700 per maund according to the quality. It is expected that cotton prices will remain firm for the remainder of the season due to tight supply of domestic stocks as well as the depreciation of the Pakistan rupee against the US dollar.

The ministry of Food and Agriculture (Minfal) signed a Letter of Intent (LoI) with Monsanto Company to introduce certified BT seeds to increase cotton production in Pakistan by applying insect-protection technology "bollgard". It has been reported that Secretary of Minfal muhammad Zia ur Rehman and Monsanto Company Asia Pacific vice president Andre Dias signed that agreement.

The agreement envisages cooperation between the two parties to advance transgenic technology in agriculture sector of Pakistan. Both parties will pursue collaborative efforts to evaluate, develop and implement practical solutions to increase cotton production in Pakistan through commercialisation of BT technology in the country.

It is foreseen that a sizeable increase in cotton production should start in Pakistan within a couple of years time by adopting the BT technology to grow cotton.

Spot rate jumps as cotton prices hit new high in forward deals

KARACHI (May 16 2008): Official spot rate was sharply higher on cotton market following the historical rise in the forward dealings on Wednesday, dealers said on Thursday. The KCA official spot rate was up at Rs 3450, dealers said. Market sources said higher trend in the dollars' rate pushed the all essentials items prices up, including cotton in the ready and forward dealing, as well.

Mills that have to cover the pressing are trying to grab every available lot in forward trading even at the all-time high level, they said. As a result, all the deals in ready finalised at Rs 3600 due to quality as ginners were keen to sell the unsold stock at the prevailing rate mainly because of lucrative level, they said.

Approximately, 600 bales of cotton finalised in forward trading for June 25-30 contract delivery at the historic level at Rs 3700, 3800 and Rs 39,00 on Wednesday, they said. On Wednesday, the NY cotton futures settled lower on investor sales and weak sentiment across the commodity complex, with brokers saying the soft tone may lead to further losses before the end of the week.

ICE Futures' July cotton contract fell 0.91 cent to close at 69.99 cents per lb, trading from 69.75 to 71.20 cents. The new-crop December cotton contract lost 0.85 cent to 78.77 cents, dealing from 78.50 to 79.60 cents. Volume traded in the July contract at 3:01 pm (1901 GMT) was 7,715 lots while December's tally was 1,696 lots. The following deals were reported as some 800 bales from Upper Sindh, 1000 bales from Rahim Yar Khan and same figure (mill to mill), all sold at Rs 3600, 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 3450.00 50 3500.00
Equivalent-------------------------------------------------
40 Kgs 3697.00 50 3747.00
================================================== =========

Illegal import of substandard Bt cotton seeds from India on rise

ISLAMABAD (May 16 2008): The illegal import of substandard Bt cotton seeds from India by private sector has become a common practice, owing to lack of monitoring on part of the government, which is creating confusion among the growers in the absence of locally prescribed seeds.

According to an estimate, in Punjab 80 percent of the area under cotton cultivation used Bt cotton seeds. "There is shortage of the registered and authorised seeds in Punjab. Only 50 to 30 percent original seeds are available. So, in order to cope with the shortage of registered seeds, most of the growers have to buy the seeds from the private sector", sources told Business Recorder.

Bt cotton is the variety, which is most resistible to the furious attacks of mealy bug and Cotton Leaf Curl Virus (CLCV). The government has been pretending for the last four years that the country will soon succeed in making the most resistible variety of cotton like Bt but nothing has been done so far in this respect, the added.

On the other hand, fifty-two Indian scientists have started research to eliminate mealy bug attacks on cotton but unfortunately, our scientists are less bothered to take any effective measure to control this menace which has already curtailed the production immensely.

To save their crop from being damaged by the attacks of mealy bug, the growers are forced to purchase the so -called Bt cotton seeds and are making its frequent use without knowing whether they are original seeds or not.

Meanwhile, Environment Protection Agency (Pak-EPA) officials wile talking to Business Recorder here on Thursday said, "It is true that the cotton growers have to use the pesticides for more than three times on the crop just to save it from the insects like mealy bug. But it is also not wrong to say that these sprays have drastic impact on environment due to the poisonous chemicals used in the preparation of these pesticides".

They added that the residual of these sprays remain in the atmosphere atleast for seven days that has had hazardous affects on the environment and also on the quality of ground water.

India Spun Yarn Export Prices (Monthly Report)

15 May 2008 - India's exports of spun yarns are showing a slight improvement over the last one month, after more or less declining since November-December 2007, our India Correspondent reports. While demand in the export market has improved, export prices remain under pressure, as reflected by our statistical tables. The rupee has depreciated almost 3% against the U.S. dollar since January, however making exports attractive once again.

Cotton lint almost firm in west
16 May 2008 12:02 pm




Mumbai - Spot cotton lint were called almost steady amid normal demand at the markets across western India Thursday. South Indian millers were present in the market.

At Kadi in Gujarat, cotton lint S-6 A-grade was quoted between Rs 22,900-Rs 23,500/candy while average-grade traded at Rs 22,300-Rs 22,800/candy. Kapas got offered at Rs 540-Rs 610/maund. Around 10,000 bales of cotton arrived in the State today.

In Vidarbha region of Maharashtra, the 28-mm cotton lint traded at Rs 21,800-Rs 22,400/candy; 29-mm cotton lint traded at Rs 22,500-Rs 23,000/candy. Around 6,000 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 23,800/candy.

New York Close (vs. previous week)
Jly08 71.96 +41 Mch08 85.30 +73
Oct08 77.42 +27 May09 86.61 +65 4
Dec08 80.65 +42 Jly09 87.77 +61
Cotlook 07/08 A (FE)
73.95 -0.30

us weekly sales

U.S. Exports Net Sales
Accumulative 13,584,400
Weekly 231,500
China 103,900
Indonesia 29,600
Turkey 13,700
Wkly Shipments 285,400
NYK Open Interest
256,512 +7,670
Net Speculators’ Position
Long 10.4% -1.2%
NYK Certificated Stocks
1,433,804 +98,511
Awaiting Review 80,135

NYK Futures – continued this week trading in a sideways pattern within the
daily range set on May 1, basis Jly08, of 69.25 to 72.43. The U.S. dollar
continues to weaken and impact all commodities. Focus this week has been
on crude oil prices, setting new records almost daily and approaching
$128.00 a barrel today, up $28 since the first of April. Certificated stock is
building to 1.5 million bales. Now the question: Who will be able to carry the
cotton to Dec08 contract delivery, taking advantage of the 850 pt. spread,
which is about 400 pts. more than needed to carry it physically?
U.S Crop – Wet and cool weather slowed fieldwork this week in West Texas,
but the moisture was welcome. Warmer days are forecast, which should
really spark plantings. Across the Belt, 36% was planted as of May 11, down
from last year’s 41% and the five-year average of 44%.

India to export 85 lakh bales cotton
20 May 2008 3:09 pm

Mumbai - 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.

Spot cotton lint marches ahead
20 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 23,900-Rs 24,500/candy while average-grade traded at Rs 23,500-Rs 23,800 in the State today.

In Vidarbha region of Maharashtra, the 28-mm cotton lint traded at Rs 22,800-Rs 23,200/candy; 29-mm cotton lint traded at Rs 23,500-Rs 23,900/candy. Around 4,000 bales arrived in the State today.