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

Apparel/Garments | On 27th Mar 2017

NYCEDC announces $51mn package for NYC garment industry

New York City Economic Development Corporation (NYCEDC), in...

Apparel/Garments | On 27th Mar 2017

Fynd raises $500K Series A funding from Venture Catalysts

Fynd, an online to offline (O2O) e-commerce fashion marketplace, has...

Apparel/Garments | On 27th Mar 2017

India's fashion market to touch $30 bn by 2020: Report

The fashion market in India is estimated at $70 billion in 2016, with ...

Interviews View All

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

DK Sharma
Velocity Apparelz

We constantly communicate with employees at all levels

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

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
March 2017

March 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search