Home / Knowledge / News / Textiles / NY cotton futures start surging
NY cotton futures start surging
11
Nov '11
Plexus Cotton Limited reports that NY futures moved slightly higher this week, as December gained 138 points to close at 99.50 cents.

After struggling through another slow week with little demand in most consuming markets, traders woke up to an unexpectedly large US export sales report this morning, with net sales of Upland and Pima cotton totaling 999'900 running bales for the current marketing year and 24'900 running bales for the 2012/13-season. If our records are correct, it was the largest weekly sales report since October 2003! Once again it was China that dominated the action by taking 997'000 running bales net, while the remaining markets saw only a marginal increase overall, as new sales of 44'900 running bales were offset by cancellations of 41'900 running bales.

US export commitments for the current marketing year now stand at 8.9 million statistical bales, of which 0.8 million were sold under 'optional origin'. This means that sales have already reached around 79% of the latest USDA export projection of 11.3 million bales. However, shipments are still lagging considerably behind at just 1.35 million statistical bales for the season, which tempers the optimism that could otherwise be construed from this stellar pace of US sales.

Apart from apparently becoming active in the international market as well, the Chinese Reserve continued to absorb domestic cotton at a brisk pace this week by taking up another 750'000 statistical bales, bringing the total to about 1.75 million bales since mid-October. This determined action leaves little doubt that China has embarked on a mission to bolster its strategic stockpile and to support prices paid to farmers.

The cotton market has some similarities to the bond market, where the Federal Reserve and its 'zombie banking system' have been countering bearish fundamentals by absorbing treasuries into their balance sheets. Fighting the Fed is fruitless, as many bond traders who have shorted treasuries this year have found out, and it may be equally dangerous for bearish cotton traders to fight the Chinese government as long as it remains on its current buying spree. After today there are probably not too many traders left who doubt the effectiveness of the "Chinese put".

While the downside seems to be limited, what would it take for the market to move higher? Apart from Chinese support there is unfortunately not a lot of positive news to report at the moment, as most mills are still singing the blues and the yarn market remains listless. The shift from cotton to man-made fibers has taken a toll on consumption and cotton has its work cut out to regain lost ground. The most recent statistics on yarn and fabric output in China reflect this shift away from cotton. According to the National Bureau of Statistics (NBS), total yarn output in China was up 16.3% year-on-year in October, while cotton fabric production was down 7.5% year-on-year, confirming that man-made fibers have been displacing cotton.


Must ReadView All

Textiles | On 27th Jul 2017

Global yarn production improved 30% q-o-q in Q1: ITMF

In the first quarter of 2017, global yarn production rose by almost...

Courtesy: Messe Frankfurt

Textiles | On 27th Jul 2017

Intertextile Shanghai to see buyers from 100 countries

Suppliers from over 25 countries and trade buyers from around 100...

Textiles | On 26th Jul 2017

Q1 2018 revenue at Raymond soars 14%

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

Interviews View All

Kaizad Hansotia
GetNatty

Competition is the best thing that can happen to a startup

Darshan Mehta
Infinium Polychem

We are spending double digit figures on R&D

Rahul Bhadani
Looksgud

Navigating through catalogues is a bit hasslesome

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Steve Cole
Xerium Technologies

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

Marten Alkhagen
Swerea IVF AB

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

Pranav Mishra
Huemn

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

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Rupa Sood and Sharan Apparao
Nayaab

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

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