Home / Knowledge / News / Textiles / Bumper export sales help recover NY cotton market
Bumper export sales help recover NY cotton market
01
Oct '11
NY futures managed to recover some of last week's heavy losses, as December gained 293 points this week to close at 102.22 cents.

Although the market felt heavy for most of the week due to continued macroeconomic worries, today's stronger than expected US export sales report and Germany's approval of a bigger European bailout fund sent sellers to the sidelines, allowing for a modest recovery.

Against the backdrop of support by the Chinese Reserve, traders and mills in China used the recent break in prices to book a sizeable amount of US, Australian and Indian cotton. The US export sales report of this morning showed net sales of 222'700 running bales, of which China took 199'700 running bales. Turkey was also a strong buyer, contracting 36'200 bales, while Bangladesh cancelled an additional 21'100 bales net. Shipments of 82'600 running bales continued to lag, as old crop stocks remain scarce and new crop is just starting to move in.

Speaking of new crop, as of September 22 there have been 1.22 million bales classed so far, the majority of which consists of cotton from South Texas (1.07 million) and Louisiana (0.10 million). So far the quality outturn is not encouraging, since 48.9% of the cotton from South Texas is 1.1/32 or shorter, while in Louisiana it is 30%.

Although micronaire is no issue in South Texas, averaging 4.5, it is on the high side in Louisiana at 5.0. It is evident from these fiber characteristics that the crops were under stress this summer and there will probably be more of this deficient cotton, especially in West Texas, Georgia and Alabama.

The mixed quality of these first 1.22 million bales is resulting in lower tenderability, since only 56.1 percent pass the requirements for certified cotton.

However, while some traders feel that a smaller percentage of tenderable cotton is bullish, we don't necessarily agree, because after certified stock got cleaned out by last season's bull market, it may once again become the dumping ground for odd qualities this season.

When we look at the composition of the 29'145 bales that were in the certified stock on September 26, we notice that 44% were of 1.1/32 staple, while 34% were 1.1/16 and just 22% measured 1.3/32 or longer. Once the West Texas crop moves in, additional short staple cotton is likely to hit the board, especially if NY futures remain relatively high compared to foreign growths. In order to find a taker for this cotton in an inverted market is not going to be an easy task, especially since a fast harvest reduces the odds for a short squeeze.

The lower house of parliament in Germany voted for a beefed up version of the EFSF (European Financial Stability Facility), a TARP-like version designed to buy bonds in secondary markets, enabling bank recapitalizations and offering precautionary credit lines. In short, Europe is trying the same model as the US by using more debt to combat an escalating debt problem.

Must ReadView All

Textiles | On 23rd Mar 2017

South Korean Samil Spinning acquires Buhler Quality Yarns

South Korean yarn producer Samil Spinning has acquired US based...

Apparel/Garments | On 23rd Mar 2017

E-retailers to pay up to 1% TCS under GST

E-retail marketplaces will need to deduct up to 1 per cent tax...

Textiles | On 23rd Mar 2017

Lanxess to expand chemical intermediates capacity

The Advanced Industrial Intermediates business unit of German...

Interviews View All

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Claudia Kersten
Global Organic Textile Standard

‘GOTS is a very efficient supply chain management tool, especially for...

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Kai Poehler
Voith Paper GmbH & Co. KG

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

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Igor Chapurin
Chapurin

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

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Sonam & Paras Modi
SVA

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

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:
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