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 26th Jul 2017

Q1 2018 revenue at Raymond soars 14%

The consolidated revenue of Raymond Limited for the first quarter of...

Textiles | On 26th Jul 2017

Textile Corp of America to create 1000 jobs in Tennessee

Textile Corporation of America Inc, a leading textile manufacturer,...

Textiles | On 26th Jul 2017

Leather & footwear industry expecting incentive package

India’s leather and footwear industry is anticipating an incentive...

Interviews View All

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Mohammad Hassan
Biax Fiberfilm

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

Igor Chapurin
Chapurin

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

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

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

July 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


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



X