Cotton

Status
Not open for further replies.

rakeshmalik

Well-Known Member
Brisk activity, no change in price levels on cotton market

KARACHI (September 09 2008): Trading improved on the cotton market on Monday as exporters and mills both were involved in hectic buying on anticipation that the crop size may miss the target for the current season, dealers said. The official spot rate was unchanged at Rs 4125, they said.

Phutti prices in Sindh were unchanged at Rs 1900-1925 for the second session in a row and in Punjab, the rates were also same at Rs 1800-1900, they said. Fresh rains in the cotton growing areas again are causing concern among the cotton circle as the rains may hit the quality, they said adding that the production also may be lower-than-expected.

Exporters are buying cotton to play on both local and foreign markets as rising dollar rate is propelling them to earn better profits by selling to foreign countries and in the local market they will get good profit after selling to the mills and spinners.

Additionally, the rains may delay phutti arrivals, which is likely to give a boost to the prices. Meanwhile ginners were selling phutti at the present levels and not trying to increase prices, they added.

The following deals were reported: 4000 bales of cotton from Shahdadpur sold at Rs 475-4200, 3800 bales from Tando Adam at Rs 4175-4200, 3000 from Sanghar at Rs 4175, 800 bales from Sarhari at Rs 4175-4200, 1000 bales from Khanpur at Rs 4175, 2000 bales from Hala at 4150-4175, 2000 bales from Nawabshah at Rs 4175-4200, 1000 bales from Sahahpur Chaker at Rs 4175-4200, 1000 bales from Hala at Rs 4175-4200, 600 bales from Noabad at Rs 4175-4200, 1000 bales from Hyderabad at Rs 4175-4200, 600 bales from Bhawalnagar at Rs 4075, 600 bales from Mian Channu at Rs 4100, 2000 bales from Burewala 4100-4125, 1000 bales from Khanewal at Rs 4125, 600 bales from Kabirwala at Rs 4125, 800 bales from Chichawatni at Rs 4075-4100, 400 bales from Gojra at Rs 4100 and 400 bales from Muridwala at Rs 4100, 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 4,125.00 50 4,225.00
Equivalent-------------------------------------------------
40 Kgs 4,421.00 50 4,521.00
===========================================================
 

rakeshmalik

Well-Known Member
New York cotton futures settle lower

NEW YORK (September 09 2008): Cotton futures finished lower Monday on modest investor sales after an early advance inspired by other financial markets petered out as well and fibre contracts may drift lower as a result, analysts said. Key December cotton futures fell 0.24 cent to end at 65.60 cents per lb. The contract traded from 65.30 to 66.87 cents.

Volume traded in the December contract stood at 12,225 lots at 2:43 pm (1843 GMT). Mike Stevens, an analyst for brokers SFS Futures in Mandeville, Louisiana, said cotton derived some leads in going up from news that Washington will bail out troubled mortgage giants Fannie Mae and Freddie Mac.

Analysts said cotton followed other financial markets higher, but a near 90-minute disruption in trading because of technical problems at the exchange seemed to zap interest. "By the time we opened up again, the zip was gone (from the cotton market)," said Stevens.

Traders said the market will likely take its lead from the weekly crop progress report of the US Agriculture Department and the weekly spec/hedge report from the exchange due out later on Monday. Later in the week, the market will turn its attention to the monthly USDA supply/demand report.

The trade is also interested in news of how much damage was inflicted to cotton quality and yields by a string of storms, which have hit the US Gulf. Brokers Flanagan Trading Corp pegged support in the December contract at 65.40 and 64.50 cents, with resistance at 66.35 and 67.55 cents. Volume traded Friday was 33,771 lots, according to exchange data. Open interest in the cotton market rose 2,126 lots to 221,412 contracts as of September 5, the exchange said.
 

rakeshmalik

Well-Known Member
Cotton lint dips on rising arrivals
9 Sep 2008 4:50 pm

Mumbai – Cotton lint prices were quoted lower amid increasing arrivals of new crop at major markets across west India Tuesday. A few places in Maharashtra reportedly received rainfall that is expected to benefit the crop.



In Gujarat, new cotton traded at Rs 600-Rs 700/maund; while deals for new cotton were recorded at 2,900-Rs 3,300/quintal in Madhya Pradesh.



At Kadi market in Gujarat, cotton lint S-6 A-grade was quoted at Rs 28,300-Rs 28,600/candy while average-grade traded at Rs 28,000-Rs 28,300/candy. Kapas traded at Rs 570-Rs 590/maund. Around 1300 bales arrived in the State today.



In Maharashtra, the 28MM cotton lint traded at Rs 27,900-Rs 28,200/candy; 29MM cotton lint traded at Rs 28,300-Rs 28,500/candy; while 30MM cotton lint traded at Rs 28,600-Rs 28,800/candy; and 31+MM cotton lint traded at Rs 29,000-Rs 29,300/candy. Around 500 bales of cotton reached across the State.



At Sendhwa market in Madhya Pradesh, the 28+MM cotton lint traded at Rs 27,900-Rs 28,200/candy; 29MM cotton lint traded at Rs 28,300-Rs 28,400/candy; 30+MM cotton lint traded at Rs 28,500-Rs 28,800/candy; and DCH variety traded at Rs 31,500-Rs 33,000/candy.
 

rakeshmalik

Well-Known Member
KCA official spot rate reduced modestly

KARACHI (September 10 2008): Official spot rate was reduced modestly on the cotton market on Tuesday in process of hectic trading, dealers said. The official spot rate was lowered by Rs 25 to Rs 4100, they said. Phutti prices in Sindh were unchanged at Rs 1900-1925 for the second session in a row and in Punjab, the rates were also same at Rs 1800-1900, they said.

On Monday, the NY cotton futures finished lower on modest investor sales after an early advance inspired by other financial markets petered out as well and fibre contracts may drift lower as a result, analysts said.

Key December cotton futures fell 0.24 cent to end at 65.60 cents per lb. The contract traded from 65.30 to 66.87 cents. Volume traded in the December contract stood at 12,225 lots at 2:43 pm (1843 GMT). Local market sources said that the mills and exporters were busy in finalising the deals at the present level. The ginners were also preferring to sell cotton to dispose of the unsold stock, they added.

THE FOLLOWING DEALS WERE REPORTED: 4000 bales of cotton from Shahdadpur sold at Rs 4150-4175, 2600 bales from Tando Adam at Rs 4150-4175, 500 bales from Nawab Shah at Rs 4150, 500 bales from Sakrand at Rs 4150, 400 bales from Sarhari at Rs 4150-4175, 1600 bales from Sanghar at Rs 4150, 600 bales from Shahpur Chaker at Rs 4150-4175, 1600 bales from Mirpur Khas at Rs 4125-4150, 800 bales from Hyderabad at Rs 4150, 1000 bales from Khanewal at Rs 4125, 200 bales from Kabir wala at Rs 4125, 400 bales from Bhawalnaga at Rs 4085, 2000 bales from Burewala at Rs 4090-4125, 200 bales from Mia Channu at Rs 4100, 200 bales from Renala Khurd at Rs 4100, 200 bales from Pakpattan at Rs 4100, 200 bales from Garha Mur at Rs 4100, 400 bales from Vehari at Rs 4100, 200 bales from Gojra at Rs 4100, 400 bales from Muridwala at Rs 4075, 200 bales from Gajjo at Rs 4075 and 200 bales from Chichawatni at Rs 4100p, 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 4,100.00 50 4,200.00
Equivalent-------------------------------------------------
40 Kgs 4,394.00 50 4,494.00
===========================================================
 

rakeshmalik

Well-Known Member
New York cotton futures tumble

NEW YORK (September 10 2008): Cotton futures finished softer on Tuesday on investment fund liquidation and tumbling commodity markets, with analysts saying the glum mood may lead to further losses this week. Key December cotton futures fell 1.32 cents to finish at 64.28 cents per lb. Based on the weekly second position daily charts, it was the lowest close for cotton since late in 2007.

The contract traded from 63.90 to 65.82 cents. Volume traded in the December contract stood at 15,563 lots at 2:38 pm (1838 GMT). Analysts said fibre contracts are moving mainly due to what happens in other markets and the gyrations of the US dollar. "Cotton is not trading cotton fundamentals.

Index funds are liquidating across the gamut" of the commodity sector," said Keith Brown, president of commodity firm Keith Brown and Co in Moultrie, Georgia. There is also lingering unease about the bailout of mortgage giants Fannie Mae and Freddie Mac and what would the implication for cotton demand would be, Brown said.

Traders said the market will wait for the weekly export sales report due on Thursday and the monthly supply/demand report from the US Agriculture Department to provide direction for trading. Trade is also digesting news on how much damage was inflicted to cotton quality and yields by storms, which hit the US Gulf region.

Brokers Flanagan Trading Corp pegged support in the December contract at 63.75 and 62.90 cents, with resistance at 64.50 and 65.40 cents. Volume traded Monday was 16,661 lots - exchange data. Open interest in the cotton market dropped 3,080 lots to 221,412 contracts as of September 8 - the exchange said.
 

rakeshmalik

Well-Known Member
Cotton lint declines in west India
10 Sep 2008 5:01 pm


Mumbai – Cotton lint prices retreated slightly at major markets across west India Wednesday. The decline was more in forward-delivery than ready-delivery. Though, millers are buying more in forward-delivery. Traders say, arrivals will pick up from first week of October in Gujarat.



At Kadi market in Gujarat, cotton lint S-6 A-grade was quoted at Rs 27,800-Rs 28,300/candy while average-grade traded at Rs 27,000-Rs 27,600/candy. Kapas traded at Rs 570-Rs 590/maund.



In Maharashtra, the 28MM cotton lint traded at Rs 27,400-Rs 27,800/candy; 29MM cotton lint traded at Rs 27,900-Rs 28,100/candy; while 30MM cotton lint traded at Rs 28,200-Rs 28,500/candy; and 31+MM cotton lint traded at Rs 28,600-Rs 28,800/candy.



At Sendhwa market in Madhya Pradesh, the 28+MM cotton lint traded at Rs 27,400-Rs 27,800/candy; 29MM cotton lint traded at Rs 27,900-Rs 28,100/candy; 30+MM cotton lint traded at Rs 28,200-Rs 28,500/candy; and DCH variety traded at Rs 31,500-Rs 33,000/candy.
 

rakeshmalik

Well-Known Member
Sep 10, 2008 (Tribune Information Services via COMTEX) -- King Cotton looks more like the court jester these days.

Cotton farmers statewide are getting ready to harvest around the first week of October, but even as crop conditions appear to have improved from the drought, the cost of production versus profit is driving some farmers to give up on the legendary crop.

Calhoun County's biggest cotton grower, Woody Cheatwood has been growing cotton for 43 years. His daddy grew it too, like his daddy before him.

He said his 950 acres of cotton in the Choccolocco Valley should each produce about 600 pounds of lint, the soft, white fiber that is the plant's trademark, but at the prices it would fetch today he likely won't even make up the money he invested in the crop.

This will be the last year he grows it, Cheatwood said.

"Cotton's always been good to us, it paid the bills when nothing else would," he said, "but it's gotten to a point where it'll break your ass if you don't make enough."

The Alabama Department of Agriculture and Industries estimates that lint sells at an average of 49.7 cents a pound, meaning Cheatwood would make just less than $300 an acre if his expectations for the harvest are right.

Cheatwood said he estimates next year it will cost him $170 in fertilizer and $140 in seed per acre alone, not counting the cost of harvesting the cotton, which is more labor-intense than other crops.

The cost of producing cotton is on the upswing, and unless the price at market jumps to about 80 to 90 cents a pound, Cheatwood said there's no way he can stay in the business.

He said the abundance of cotton in the global market doesn't help the marketability of his crop.

"What we grow here doesn't mean anything anymore," Cheatwood said.

John Dasher, a statistician with the state Agriculture Department, said cotton growing is down around the state. He said in 1961, there were 942,000 acres of planted cotton in the state. In 2008, there are just 310,000 acres.

Dasher said farmers are looking to plant crops that need less input like soy beans and corn for grain and hopefully be able to make profits that way.

"You can't make any money (off cotton), so what can you do?" he said.

Howard Pittman, a farmer in Cherokee County's Spring Garden area, isn't sure if he'll grow cotton next year either. Pittman said he also hopes his 235 acres will produce 600 pounds of lint each, but he won't know what to expect until the time comes for picking.

Pittman said he harvested fewer than 250 pounds of lint an acre in 2007 because of the drought and had to collect insurance on his crop. Now he's facing the likelihood of still losing money on the 2008 crop, and he said the results, factored in with how the market is doing, will determine whether he'll put an end to his 16 years of cotton growing.

"If the price doesn't react with the cost of the input, you won't be able to grow it," Pittman said.

Dasher said farmers aren't the only ones being affected by lower cotton production. Cotton buyers, equipment companies and fertilizer companies, among others, would suffer from a diminishing cotton industry, he said.
 
Status
Not open for further replies.

Similar threads