Pakistan's cotton production eyed up
28 Jun 2008 10:15 am
Chicago - Pakistan's cotton production may increase in 2008-09 as farmers shift out of sugarcane acres due to low prices and administrative issues, Rabobank says in a report. Cotton in Pakistan is still under threat from the mealybugs and cotton leaf curl virus that cut into the country's 2007-08 crop, the report says.
...................................................................................................................... China's cotton imports may rise
28 Jun 2008 10:20 am
Chicago - China is expected to increase cotton imports amid expectations for its growing share of global cotton consumption and reduced production in the country, Rabobank says in a research report. Chinese cotton consumption in 2007-08 is likely to be over 43 per cent of the world total, growing into 2008-09 as mill use slows in Europe and the US, according to the report.
Cotton production in China may slow dramatically as a push toward grains and oilseeds consumes more acreage, though cotton acres may see a boost from its government's plan to subsidize improved cotton seeds for farmers, the report says.
The supply and demand scenario is favorable to US cotton exports despite China's interest in sourcing more cotton from Africa, the report says. African growth is slow, volatility there is high and cotton yields are low, says Michael Whitehead, vice president of food and agribusiness research and advisory at Rabobank.
....................................................................................................................
ICE cotton slips in thin trade
28 Jun 2008 10:19 am
New York - ICE Futures US cotton settled lower Friday in anemic trade as the market awaits Monday's acreage report.
Most active December futures settled 37 points lower at 81.40 cents a pound, and the nearby July contract settled down 68 points at 73.41c. For the week, the December contract gained 129 points.
Futures opened slightly lower, but then moved higher on strength from the softer U.S. dollar and strong CRB Index. The market hit buy stops, but December found resistance at the session high of 82.59c, falling back to support at 80.77c. Futures trimmed some losses to move near unchanged but slid into the close.
Traders put on anticipatory positions ahead of the U.S. Department of Agriculture's acreage report in Friday's session, said Ron Lawson, partner at LOGIC Advisors in Napa Valley, Calif.
"There's two numbers in everybody's mind: what they really think the crop is and what they think the USDA will say on Monday," Lawson said.
Analysts surveyed by Dow Jones Newswires expect acreage to slip to 8.89 acres, down from the 9.38 million acres projected by the USDA in May. Inclement weather in West Texas likely cut into more acres since the survey to determine the new projection that was taken, analysts said.
Traders will be quick to buy if the market drops on a bearish estimate, Lawson said.
The 2008-09 cotton acreage report is scheduled to be released at 8:30 a.m. EDT (12:30 GMT) Monday.
Following reaction to the report, the market could find support from West Texas weather if crop conditions deteriorate, said Rob Kurzatkowski, futures analyst at optionsXpress in Chicago.
Otherwise, the market will trade choppily in search of direction, he said.
Technically, overhead resistance from 82-82.60c basis December contracts remains an obstacle, said Mike Stevens, analyst at SFS Futures in Mandeville, La.
ICE daily cotton stocks increased by 6,049 480-pound bales Thursday to total 1.64 million bales, with 46,539 awaiting review.
ICE cotton open interest increased by 1,691 positions Thursday to total 216,732, according to the exchange.
Volume was estimated 9,405 lots. In options, approximately 3,722 calls and 2,642 puts traded, according to exchange data.
Close Change Range
Jul 73.41 -68 pts 73.41-74.90
Oct 78.11 -28 pts 77.50-79.06
Dec 81.40 -37 pts 80.77-82.59
28 Jun 2008 10:15 am
Chicago - Pakistan's cotton production may increase in 2008-09 as farmers shift out of sugarcane acres due to low prices and administrative issues, Rabobank says in a report. Cotton in Pakistan is still under threat from the mealybugs and cotton leaf curl virus that cut into the country's 2007-08 crop, the report says.
...................................................................................................................... China's cotton imports may rise
28 Jun 2008 10:20 am
Chicago - China is expected to increase cotton imports amid expectations for its growing share of global cotton consumption and reduced production in the country, Rabobank says in a research report. Chinese cotton consumption in 2007-08 is likely to be over 43 per cent of the world total, growing into 2008-09 as mill use slows in Europe and the US, according to the report.
Cotton production in China may slow dramatically as a push toward grains and oilseeds consumes more acreage, though cotton acres may see a boost from its government's plan to subsidize improved cotton seeds for farmers, the report says.
The supply and demand scenario is favorable to US cotton exports despite China's interest in sourcing more cotton from Africa, the report says. African growth is slow, volatility there is high and cotton yields are low, says Michael Whitehead, vice president of food and agribusiness research and advisory at Rabobank.
....................................................................................................................
ICE cotton slips in thin trade
28 Jun 2008 10:19 am
New York - ICE Futures US cotton settled lower Friday in anemic trade as the market awaits Monday's acreage report.
Most active December futures settled 37 points lower at 81.40 cents a pound, and the nearby July contract settled down 68 points at 73.41c. For the week, the December contract gained 129 points.
Futures opened slightly lower, but then moved higher on strength from the softer U.S. dollar and strong CRB Index. The market hit buy stops, but December found resistance at the session high of 82.59c, falling back to support at 80.77c. Futures trimmed some losses to move near unchanged but slid into the close.
Traders put on anticipatory positions ahead of the U.S. Department of Agriculture's acreage report in Friday's session, said Ron Lawson, partner at LOGIC Advisors in Napa Valley, Calif.
"There's two numbers in everybody's mind: what they really think the crop is and what they think the USDA will say on Monday," Lawson said.
Analysts surveyed by Dow Jones Newswires expect acreage to slip to 8.89 acres, down from the 9.38 million acres projected by the USDA in May. Inclement weather in West Texas likely cut into more acres since the survey to determine the new projection that was taken, analysts said.
Traders will be quick to buy if the market drops on a bearish estimate, Lawson said.
The 2008-09 cotton acreage report is scheduled to be released at 8:30 a.m. EDT (12:30 GMT) Monday.
Following reaction to the report, the market could find support from West Texas weather if crop conditions deteriorate, said Rob Kurzatkowski, futures analyst at optionsXpress in Chicago.
Otherwise, the market will trade choppily in search of direction, he said.
Technically, overhead resistance from 82-82.60c basis December contracts remains an obstacle, said Mike Stevens, analyst at SFS Futures in Mandeville, La.
ICE daily cotton stocks increased by 6,049 480-pound bales Thursday to total 1.64 million bales, with 46,539 awaiting review.
ICE cotton open interest increased by 1,691 positions Thursday to total 216,732, according to the exchange.
Volume was estimated 9,405 lots. In options, approximately 3,722 calls and 2,642 puts traded, according to exchange data.
Close Change Range
Jul 73.41 -68 pts 73.41-74.90
Oct 78.11 -28 pts 77.50-79.06
Dec 81.40 -37 pts 80.77-82.59