Home / Knowledge / News / Textiles / Largest ever purchase for Chinese cotton reserve on Dec 21
Largest ever purchase for Chinese cotton reserve on Dec 21
24
Dec '12
The Chinese reserve continues to accumulate cotton at break-neck pace, including what was almost certainly the largest ever one-off purchase of cotton, today, on December 21st 2012: 380,000 tons of domestic cotton, for which the reserve paid roughly $1.2 Billion USD. 

Cotton futures managed to finish higher for both the day and week and remain in a rising channel since hitting a low of 69.79 on November 8th. 

While futures’ strength has put noticeable pressure on the physical basis, multiple factors have proven constructive: consistently US strong export sales; the de-cert of much of the cotton tendered against the December contract; a friendly technical set-up that has attracted some specs back to the long side of the market; ideas that the worst has already been factored into S&D estimates; stronger yarn prices and healthy hand-to-mouth demand in much of Asia and the subcontinent; and the fact that merchants are only likely to sell futures into a rising, not falling, market.
 
A possible release of import quota in combination with reserve re-sales could also have a positive impact, although going forward policy for the 13/14 season remains a big question the market will have to grapple with in Q1 and Q2 2013 as well.
 

ECOM USA

Must ReadView All

Textiles | On 23rd May 2017

Grasim’s VSF business net revenue up 12% in Q4 FY17

The viscose staple fibre (VSF) business of Grasim Industries has...

Apparel/Garments | On 23rd May 2017

Apparel, footwear use may rise by 63% in 2030: Report

The apparel and footwear consumption is projected to rise by 63 per...

Textiles | On 22nd May 2017

Maintaining NAFTA benefits is crucial: Cotton council

The US must remain a participant in a vibrant North American Free...

Interviews View All

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Angelina Francesca Cheang
MY ANJE

'Consumers in the age-group 21 to 38 are driving the activewear trend'

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Steve Cole
Xerium Technologies

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

Wendell Rodricks
Wendell Rodricks

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

Mike Hoffman
Gildan Activewear SRL

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

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

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:
May 2017

May 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