Home / Knowledge / News / December cotton to trade higher
December cotton to trade higher
22
Oct '07
New York cotton futures edged higher this week as mill demand for non U.S. growths increased significantly. This coupled with USDA's announcement that 2008 U.S. planted cotton acreage would drop to 10 million acres took the red December futures to its contract high and positioned the 2007 December to possibly move above 67-68 cents.

The reality that all field crops are in short supply, relative to demand, came center stage to the market this week. While a set back could occur, December cotton will trade higher.

Our comment last week that the current December futures price, 63-64 cents, could be the lowest price we will see for cotton for the next two to three years is looking more and more prophetic. While world carryover is above 55 million bales, the world stocks to use ratio remains at a fourteen year low. Yet, cotton prices are in no position to fight for increased acreage in 2008. Thus, U.S. and world stocks will move lower.

Both U.S. and world oilseed and grain prices have far outstretched the price increase in world cotton prices. The world agricultural commodity markets are all trading soybeans and wheat and those crops will command the bulk of acreage, possibly forcing U.S. cotton acreage even below the ten million acre level. Impossible it seems, but U.S. planted acreage could be in the single digits, even as low as 9.0 million acres.

Chinese mills were aggressive buyers this week, but not of U.S. growths. As stated several times over the past year, Chinese mills have had considerable success in spinning Indian cotton.

Must ReadView All

Textiles | On 27th Apr 2017

Maharashtra govt working on second textiles policy

The textiles department of the government of Maharashtra is working...

Apparel/Garments | On 27th Apr 2017

EC takes action to make garment sector more sustainable

The European Commission (EC) has presented a set of focused actions...

Textiles | On 27th Apr 2017

Seven new organisations join ZDHC Programme

The Zero Discharge of Hazardous Chemicals (ZDHC) Programme from...

Interviews View All

Rahuul Jashnani
Jashn

‘Online economy has changed the whole dynamics of buying habits.’

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
April 2017

April 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X