Cotton

[rakeshmalik]

Rising trend persists on cotton market

KARACHI (July 12 2008): Upward trend persisted on the cotton market on Friday as most of the spinners were trying to grab every lot offered by the ginners, dealers said on cotton market on Friday. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 3650, they said. Phutti prices in Punjab were Rs 1750-1800 and in Sindh at Rs 1850-1900, they added.

A deal has done at Rs 4000 on increased demand by the mills, the spinners were anticipating that exporters will increase buying of cotton as India has removed duty on cotton import. It is most likely that fine quality of cotton may fetch better prices due to rising demand by the mills and exporters, they said.

In the meantime, the market was in grip of speculations that the export duty may be imposed on the cotton in the near future while the country has exported 5000 bales to India, Naseem Usman, leading cotton analyst said.

This factor may cause further rise in the prices of cotton during some next sessions. But on the other hand, it is likely to help in stabilising prices in the local market, they added. On Thursday, the NY cotton futures finished slightly firmer as most players were waiting for a government crop report on Friday before making any move, brokers said.

The key December cotton contract rose 0.08 cent to finish at 73.58 cents per lb, dealing from 72.16 to 73.70 cents. It was an inside day since the range was within Wednesday's 71.76 to 73.81 cents band. Volume traded in the December contract stood at 10,148 lots at 2:40 pm EDT (1840 GMT).

The following deals were reported: some 200 bales of cotton from Murid Wala sold at Rs 3950, same figure from Sahiwal, 1000 bales from Burewala, 400 bales from Arif Wala, 400 bales from Chichawatni , 200 bales from Mian Channu all finalised at the same rate and 400 bales from Khanewal done at the highest rate at Rs 4000, 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 3650.00 50 3700.00
-----------------------------------------------------------
Equivalent
-----------------------------------------------------------
40 Kgs 3912.00 50 3962.00
===========================================================

 

[rakeshmalik]

New York cotton futures settles firm

NEW YORK (July 12 2008): Cotton futures settled steady Friday on late investment short-covering and trade buying as the market rebounded strongly following a sell-off midway through the session, brokers said. The key December cotton contract rose 0.01 cent to finish at 73.59 cents per lb, dealing from 72.23 and 75.20 cents. Volume traded in the December contract stood at 13,226 lots at 2:35 pm EDT (1835 GMT).

"We went to the edge of the cliff and did not go over," said Mike Stevens, an analyst for brokers SFS Futures in Mandeville, Louisiana. He said the key December cotton contract's ability to hold the 72.16 cents, basis December, low of Tuesday may help stabilise fiber contracts. "A close below yesterday's 72.16 low would be an "outside day reversal to the downside" - a fairly reliable technical signal," said Stevens.

The market's finish in positive territory could possibly mean "a loss in downward momentum" for the bear market in cotton, explained Stevens. Cotton futures also derived some inspiration from the strong tone of soybean futures in Chicago, dealers said. Another source of support was the US Agriculture Department's monthly supply/demand report.

USDA reduced its estimate for 2008/09 world cotton ending stocks to 53.24 million (480-lb) bales from the 54.09 million projected last month. It reduced production to 114.94 million from 116.43 million and cut world consumption to 125.91 million bales from 127.16 million.

USDA estimated US 2008/09 cotton production at 14 million bales, from 14.5 million last month. Severe losses in Texas would probably trim this year's crop, analysts said. "When all is said and done, world stocks are down," said Sharon Johnson, cotton expert at First Capitol Group in Atlanta. Now, she said the trade would be looking toward the more detailed USDA supply report in August.

"I don't think there is much doubt that we'll see US numbers are going to be down again next month," she said. Brokers Flanagan Trading Corp sees support in the December contract at 72.50 and 71.65 cents, with resistance at 73.60 and 74.40 cents. Volume traded Thursday hit 12,780 lots, exchange data showed. Open interest in the cotton market rose 459 lots to 221,457 lots as of July 10, exchange data showed.
///////////////////////////////////////////////////////////////////////////////////////////////////

ICE amends rule to expand cotton trading limits
NEW YORK (July 12 2008): ICE Futures US will implement new daily price limit rules for the cotton No 2 futures contract, effective July 11, that will expand the contract's limit to 6 cents per pound under specific conditions, it said on Thursday. While no daily trading limit is applied to an expiring futures contract.

The daily trading limit will be expanded to 4 cents per lb if two of the first five contracts close at the 3 cents limit, ICE said in an exchange notice. If two of these contracts settle at the 4-cent limit, the daily price limit will expand to 5 cents per lb on the following business day.

If none of the contracts settle at the 5-cent limit, however, the limit will revert to a 4-cent price limit the next business day, ICE said. If either of the two futures contracts with the highest open interest settle at 84 cents per lb or higher, the daily price limit will expand by one cent to a maximum of six cents per lb.

 

[rakeshmalik]

Cotton lint struggles for movement
12 Jul 2008 2:54 pm

Mumbai - Cotton lint prices were quoted at the previous level amid absence of buyers as well as sellers at major markets across western India Saturday.

Sellers are of the opinion that cotton lint prices may not fall due to very less unsold stocks in the market, and that the withdrawal of import duty will not affect the prices. However, buyers are expecting a fall of Rs 700-Rs 1,000/candy in the near-term.

At Kadi market in Gujarat, cotton lint S-6 A-grade was quoted at Rs 27,500-Rs 27,800/candy while average-grade traded at Rs 27,000-Rs 27,300/candy.

In Maharashtra, the 28-mm cotton lint traded at Rs 27,300-Rs 27,700/candy; 29-mm cotton lint traded at Rs 27,800-Rs 28,200/candy; while 30-mm cotton lint traded at Rs 28,500-Rs 28,800/candy.

At Sendhwa market in Madhya Pradesh, the 28-mm cotton lint traded at Rs 27,500-Rs 27,800/candy; 29/30-mm cotton lint traded at Rs 28,000-Rs 28,500/candy; and 31 mm cotton lint at Rs 28,700-Rs 29,500/candy.

///////////////////////////////////////////////////////////////////////////////////////////////////

Cotton lint impassive in north India
12 Jul 2008 2:52 pm

Abohar - Cotton lint prices remained unchanged due to absence of buyers as well as sellers at major markets across north India Saturday.

Sellers are of the opinion that cotton lint prices may not fall due to very less unsold stocks in the market, and that the withdrawal of import duty will not affect the prices. However, buyers are expecting a fall of Rs 700-Rs 1,000/candy in the near-term.

Across Punjab, cotton lint traded at Rs 2,780-Rs 2,790/maund at Fazilka, Kotakpura, Muktasar and Bathinda; Rs 2,750-Rs 2,755/maund at Malot and Gidarbha; Rs 2,740/maund at Abohar; Rs 2,730/maund at Manasa; and at Rs 2,780-Rs 2,790/maund at Rampura, Barnala and Budhaldha.

Cotton lint traded at Rs 2,740-Rs 2,790/maund in Haryana and at Rs 2,640-Rs 2,700/maund in Rajasthan.


///////////////////////////////////////////////////////////////////////////////////////////////////

World cotton output down on US, India cuts: USDA
12 Jul 2008 10:08 am

Chicago - World cotton production in the new crop year will be 15 lakh bales less than previously expected, the USDA says in Friday's supply/demand report. Blame it on reductions in India and the US, the USDA explains. India's 2008-09 cotton crop was cut to 2.55 crore bales, a 10 lakh bale drop, while the US 2008-09 crop was trimmed 500,000 bales to 1.4 crore. The cut to India's crop is based on "lower reported planted area," USDA says

 

[rakeshmalik]

Business volume up in steady condition on cotton market

KARACHI (July 13 2008): Steadier trend was seen on the cotton market on Saturday as prices were firm amid active buying by the exporters and mills, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 3650, dealers said.

Phutti prices were easier in Punjab at Rs 1700-1725 while rates in Sindh were at Rs 1850-1900, they said. Most of the deals finalised at the higher rates due to strong demand by the mills and exporters, but now it seems that activity may come down as a result of stable rupee rate against dollar, some leading dealers said.

In the meantime, growers and ginners are interested in fresh selling at the prevailing levels being lucrative, but now the buyers may prefer sidelines on anticipations of fall in the rates, they added.

On Friday, New York cotton futures settled steady on late investment short-covering as the key December cotton contract rose 0.01 cent to finish at 73.59 cents per lb, dealing from 72.23 and 75.20 cents. Volume traded in the December contract stood at 13,226 lots at 2:35 pm EDT (1835 GMT). December cotton contract's ability to hold the 72.16 cents, basis December, low of Tuesday may help stabilise fiber contracts.

The following deals were reported : some 200 bales from Sanghar sold at Rs 3985, 200 bales from Pir Mahal at Rs 4000, 200 bales from Khanewal at Rs 3950, 400 bales from Sahiwal at Rs 3950-4000, 600 bales from Arif wala at Rs 3950-4000, 600 bales from Burewala at Rs 3950-4000, 400 bales from Chichawatni at Rs 3950-4000 400 bales from Pakpattan at Rs 3950-4000, 400 bales from Hyderabad at Rs 3950-4000, 200 bales from Gojra at Rs 4000, 200 bales from Haslipur at Rs 3925 and 400 bales from Mian Chunno at Rs 3950-4000, 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 3650.00 50 3700.00
-----------------------------------------------------------
Equivalent
-----------------------------------------------------------
40 Kgs 3912.00 50 3962.00
===========================================================

 

[rakeshmalik]

new york cotton

Cotlook A Index (FE)
2007/08 77.05 +0.20
2008/09 79.25 -1.55
U.S. Exports Net Sales
Accumulative 14,992,800
Weekly 49,900
Vietnam 17,400
China 11,500
Turkey 4,900
Wkly Shipments 293,800
CCC Loan Outstanding
5,504,969 -228,944
NYK Open Interest
221,457 +4,595
Net Speculators’ Position
Long 6.2% -1.0%
NYK Certificated Stocks
1,691,951 +16,547
Awaiting review 29,884

 

[rakeshmalik]

Activity picks up, lint prices touch Rs 4000 mark, spot rate at Rs 3650

KARACHI (July 14 2008): The cotton market resumed activity with reports about government and export sector leaders are going to hold talks with strong perception positive outcome will -emerge. The spot rate has been lowered to Rs 3650 and remained unchanged. Lint prices moved up to Rs 4000 in moderate turnover.

WORLD SCENARIO: The commodities' prices generally impacted the cotton futures value, which was lately becoming softer as players awaited when do investment fund, end up with commodities in hand during week ended July 12, 2008.

On Monday cotton was down such as December shed 2.29 cents to 72.76 cents, while July lost 1.86 to 66.16 cents a pound. The cotton contracts traders said were impacted by barrage of investment fund sale. Pressured by profit taking spree that deflated markets from oil to metals. Actually they said there was nothing to do with the fact that investors felt it was time to lighten their holdings. So down it went.

On Tuesday no change was evident in cotton trading, as contracts suffered substantial losses for second day running. The investors' sales were marked right at closing hours. The market also received setback from commodities markets. However, the close observes of the market believed the trading was likely to get to stable path after reports by USDA about weekly exports sales and monthly supply and demand report towards the close of the business - Thursday and Friday.

A change in ruling situation was marked on the NYSE, which ended firm on trade and suspected mill buying as the severe selling spree in the market appeared to have run its course for now. Meanwhile weekly export sales report failed to move market, while monthly supply and demand report was eagerly awaited. The key December cotton contract rose 1.76 cents to finish at 73.50 cents per lb, dealing from 71.76 to 73.81 cents.

The cotton contracts on Thursday improved as players impressed by bad weather particularly in Texas, and expected 2008-09 cotton will range from 13 million to 14.2 million bales (480 Lb). The weekly export sales and commodities decadence was not given any weight. Anyway players are up in wait for some inspiration to make a position move.

On Friday the firmer trend persisted as investment short covering and trade buying were witnessed pushing futures higher for the third day in a row. The USDA reduced world ending stocks to 53.24 million bales from earlier 54.09 million bales reduced production to 114.94 million from 116.43 million and cut world consumption to 125.91 million bales from 127.16 million. The December rose 0.01 cent to 73.23 cents a pound.

LOCAL TRADING: For whatever reason, rising dollar or rising textile programme buyers were seen eagerly returning cotton to market for shopping. The spot rate, which shows the day or say price trend has come down to Rs 3650 and rates in ready have attracted buyers. Activity seems to have risen lately. The textile exporters have been approaching government in a bid to extract whatever was possible. They held talks on Tuesday with relevant authorities. Buying was seen on Monday at nearly 3000 bales around Rs 3750.

On Tuesday complete scenario change was seen in cotton market as millers and textile exporters returned with vendetta to buy available lots. The inspiration was backed by the hopeful reports pouring round that government was willing to push exports of textile products held up due to high cost of doing business. The spot was unchanged at Rs 3650, phutti in Punjab was selling at Rs 1650/1700 and in Sindh at Rs 1825/1850, while rates in ready ruled at around Rs 3800. The cotton bales sold numbering over 5000. The rising value of dollar, in demand to open LCs for imports, is also encouraging buyers.

On Wednesday slight slower movement in sales/purchase activity was seen. The ruling price line ranged between Rs 3825/3850. Spot rate was unchanged, while phutti rate was marginally changed on supply factor. Punjab is having scattered down pour these days. The experts are making guess work whether rains will prove beneficial.

On Thursday some improvement seen in the fore- ground, is dragging buyers to cotton market showing efforts to manufacturers and exports as much as possible. The phutti prices were almost unchanged, while spot rate resisted bid to budge. Over 5000 bales of cotton were lifted showing positive activity.

On Friday rising trend sustained as buyers were in nearly panicky lifting every available lot. The spot rate was put at Rs 3650, phutti in Punjab ruled at Rs 1750 and Rs 1800, while in Sindh at Rs 1850 and Rs 1900. On deal in ready was struck at Rs 4000, the rest changed hands at Rs 3900/4000.

On Saturday Steadier trend was seen on the cotton market on Saturday as prices were firm amid active buying by the exporters and mills, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 3650. Phutti prices were easier in Punjab at Rs 1700-1725, while rates in Sindh were at Rs 1850-1900. Most of the deals finalised at the higher rates Rs 3950-4000. It seems that activity may come down as a result of stable rupee rate against dollar. Growers and ginners appeared interested in fresh selling at the prevailing levels being lucrative, but the buyers may prefer sidelines on anticipations of fall in the rates. Some 4600 bales changed hands.

PROTESTERS GIVE WAY TO: For the last nearly six months, exporters particularly textile exporters, were trying to convince about shape of exports to come gradually. As a whole their claim was that prices they quote in the world markets prove bulgy and uncompetitive. The gradual decadence was also evident and with that louder turned the anger voice.

Not that government was unaware of or had turned indifferent but the events that confronted them proved knotty and till today some of them need to be solved. In the circumstances government is turning to one or the other problem in its view needed priority.

In the meantime, as the protest by one or the other sector continued, developing into threat to stop business (exports) and very lately showing extreme point of anger in rejecting gas price rise and WHT by the Lahore and Gujrat chamber of commerce and industry.

The move could be overlooked, but magnitude that is likely to follow has to be taken in full view to reach the depth of problem, which at this juncture has reached probably the point of no return. In case of government and exporters no one can expect.

The exporters were expecting 2008-09 budget would do well to inductee having agreed to demands of the exports, while government must have some reason to defer the subsidy request by the latest ECC meeting, which in due course of time will emerge clear. The core of the export time when countries have scope to export to their hearts content is approaching fast. The authorities should be serious about X'mas time, which will be staring in exporters faces just in few month.

According to the exporters and knowledgeable circles this is right time to plan to exports as much one can to make up some very grave losses suffered during last few months. Meanwhile, both sides must review their instances and have X'mas sales in sight to earn forex as much a possible.

SITTING ACROSS TABLE AND TALKING: Any hard core issue must precede by sitting across the table is certainly the most sensible way to reach lasting solution, such as one facing textile sector and the newly set up coalition government. Thank God a news item to this effect has recently appeared and may prove to be the turning point as a result of the problem.

The sources that are close to cotton and textile sectors have prayed talks end in success. The give and take attitude should be hallmark of the talks. Probably all business men and exporters who have thrived here necessarily protest at every thing that means to enrich the ever nearly empty states coffer, they said.

There is no doubt that apparently gas tariff rise by 31 percent seems somewhat that could be revised keeping in view that the time of textile exports have been approaching exporters with love - providing opportunity to regain losses in the past six months.

The unity of textile sector has showed the determination, still they must take for granted exporters and government both gain if the talks end in complete understanding and in fact the economy and country gain. The review will be out after the talks end and scope has been created to fill up the gap with the good news.

HOPE IN TRADE POLICY: The 2008-09 trade policy is just few days away, -which may be containing some rich presents for the textile sector. It is high time government responded to their desperate calls.

However, the govt has its own host of people keeping an eye on the sectors that enrich government exchequer enabling the task of development unfortunately needs beggars description.

The exporters have demanded nearly 30 billion rupees as subsidy to cover the shortfall that in their view was required by them for smooth sailing. The textile ministry had planned the subsidy in addition to Rs 19 billion a couple of months or so ago. The reluctance to include sort of bilateral and package in such short duration had probably prompted them to think twice for doing the needful.

Then the sector had linked their demand fulfilment to couple of weeks back ECC meeting, which considered it to be deferred. They expect ECC meeting was due in some days. However, the trade policy on July 18th, may also deliver the desired stuff. The impatience the textile exporters must have been going through is understandable. But the fact is that the government wouldn't simply ignore the so much desperate call. It can take full advantage of the occasion in Trade Policy and make some desirable announcement. In the meantime approach and contacts with proper authorities are the only way for some yields.

 

[rakeshmalik]

Cotton crop under 'white fly' attack

MULTAN (July 14 2008): Director Central Cotton Research Institute, Muhammad Arshad has said that the attack of white fly on cotton is in full swing in all the districts of southern Punjab. So the farmers should do the pest scouting regularly of their crops twice a week.

He said that farmers should spray either early in the morning or in the evening. Moreover all the parts of the plants should be carefully sprayed. He said that now a day the number of white fly is high along with its larvae. So the spray should be such that it also destroys their larvae

 

[rakeshmalik]

China yarn output in June record
07/11/08
COTTONCHINA The June yarn output recorded at 1.999 million tonnes, which was 5.46% more than the previous month; morever, 8.99% moved up to compare with the same period of last year, reported by the NBS.
The first six months of this year, the outputs had accumulated to 17.4485 million tonnes, which got 11.47% higher volume than the corresponding period of 2007.

 

[rakeshmalik]

Cotton lint calms down in Gujarat
14 Jul 2008 3:25 pm

Mumbai - Cotton lint was quoted down Rs 300/candy at the spot market in Gujarat while its prices were steady in Madhya Pradesh Monday. Markets in Maharashtra remained closed on account of Ekaadashi.

At Kadi market in Gujarat, cotton lint S-6 A-grade was quoted at Rs 27,200-Rs 27,500/candy while average-grade traded at Rs 26,700-Rs 27,000/candy.

At Sendhwa market in Madhya Pradesh, the 28-mm cotton lint traded at Rs 27,500-Rs 27,800/candy; 29/30-mm cotton lint traded at Rs 28,000-Rs 28,500/candy; and 31 mm cotton lint at Rs 28,700-Rs 29,500/candy.

//////////////////////////////////////////////////////////////////////////////////////////////////



Cotton lint slides in north India
14 Jul 2008 3:18 pm

Abohar - Cotton lint was trading down Rs 30/maund at all major markets across north India Monday.

Across Punjab, cotton lint traded at Rs 2,750-Rs 2,760/maund at Fazilka, Kotakpura, Muktasar and Bathinda; Rs 2,720-Rs 2,725/maund at Malot and Gidarbha; Rs 2,710/maund at Abohar; Rs 2,700/maund at Manasa; and at Rs 2,750-Rs 2,760/maund at Rampura, Barnala and Budhaldha.

Cotton lint traded at Rs 2,710-Rs 2,760/maund in Haryana and at Rs 2,610-Rs 2,670/maund in Rajasthan.

 

[rakeshmalik]

Prices remain firm on cotton market

KARACHI (July 15 2008): Steady trend was seen on the cotton market on Monday as prices maintained the weekend levels, in the meantime, activity inched up as compared to the previous session, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 3650, dealers said.

Phutti prices in Punjab were at Rs 1750-1800 while in Sindh unchanged at Rs 1850-1900, they said. According to the market sources, some parts of cotton belt in the Punjab received sporadic rains, which are not bad for the standing crop. But in case the rains continue for a long time, may cause damage to crop.

It appeared that cotton production figure for the coming season has been estimated downward unofficially as many growers have shifted their position from cotton to other commodities for better return, they said.

Firstly, the cotton production figure was announced at 14.01 million bales, later it was reduced to 12.6 million bales, they said. They said that the speculations are in the air that white fly and mealy bug attacked the crop slightly.

The following deals were reported : some 200 bales of cotton from Sanghar sold at Rs 3975, 400 bales from Shahdadpur at Rs 4000, 200 bales from Bahawalpur at Rs 4000, 1000 bales from Pakpattan at Rs 3940/3950, 600 bales from Chichawatni at Rs 3950-3960, 400 bales from Mangi Bagal at Rs 3950, 200 bales Gajjo at Rs 3940, 400 bales from Arif Wala at Rs 3950, 200 bales from Qaboola at 3950, 200 bales from Depalpur at Rs 3950, 600 bales from Sahiwal at 3900-3950, 200 bales from Hasilpur, 3925 and 200 bales from Hyderabad at Rs 3950, 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 3,650.00 50 3,700.00
Equivalent-------------------------------------------------
40 Kgs 3,912.00 50 3,962.00
===========================================================