Home / Knowledge / News / Textiles / US cotton continues to be in demand – Plexus
US cotton continues to be in demand – Plexus
30
Mar '13
NY futures moved sideways this week, as May added 26 points to close at 88.46 cents, while December gave up 45 points to close at 87.37 cents.

The main feature this week was the USDA Prospective Plantings report, which was released earlier today.

According to the USDA, cotton is the big loser in the fight for acreage, as farmers are expected to commit just 10.0 million acres to cotton this spring, which would be 2.3 million acres or nearly 19% less than what was actually planted a year ago.

Traders seemed to see the number as neutral to mildly bullish, although they certainly realize that this is still very much a moving target at this point.

Planting intentions for corn and soybeans are nearly identical to what was planted last season, with corn at 97.3 million acres (+0.1 million) and soybeans at 77.1 million acres (-0.1 million).

The big winners in the plantings sweepstakes are wheat at 56.4 million acres (+0.7 million) and sorghum at 7.6 million acres (+1.4 million). It looks like wheat and sorghum are stealing acreage from corn and soybeans in certain parts of the country, whereas corn and soybeans in turn are taking it away from cotton in other areas.                             

There are still a variety of factors that may alter planting decisions over the next couple of months. Price is the obvious one and cotton continued to make up ground against its closest competitors corn and soybeans, as they got hammered today in the wake of bearish stock reports. November soybeans ended today’s session at 12.51 dollars/bushel, down nearly 27 cents, while December corn closed at 5.38 dollars/bushel, down over 32 cents.

Interestingly, when we take a look at where cotton, corn, soybeans and were trading a year ago, we notice that cotton and corn were almost at identical levels to where they are today, whereas soybeans were trading substantially higher. On March 28 last year, December cotton closed at 90.69 cents/lb, December corn was at 5.36 dollars/bushel and November soybeans closed at 13.20 dollars/bushel.

Based on the above price structure, cotton farmers intended to plant 13.2 million acres a year ago, or 3.2 million acres more than what the USDA is currently projecting! Since cotton has about the same price ratio to corn as last season and is much better off compared to soybeans, such a huge drop in acreage doesn’t seem to make sense. We therefore believe that the last word in regards to cotton acreage is not spoken yet and that some farmers may have a change of heart over the coming weeks.

US cotton continued to be in good demand last week, as another 254’800 running bales of Upland and Pima cotton were sold for both marketing years combined. Shipments were once again excellent at 360’500 running bales. For the current season we now have total commitments at 11.8 million statistical bales, of which 8.1 million have already been exported. Commitments for August onwards amount to 1.3 million statistical bales, which is 0.4 million bales ahead of last season.


Must ReadView All

ITC, ICS tie up to help Moroccan textile value chain

Textiles | On 21st Apr 2018

ITC, ICS tie up to help Moroccan textile value chain

The International Trade Centre (ITC) has partnered with ICS, which...

Bangladesh garment manufacturers call for fair pricing

Apparel/Garments | On 21st Apr 2018

Bangladesh garment manufacturers call for fair pricing

Bangladesh garment manufacturers want a ‘commensurate adjustment’ by...

Pak ministry proposes extension to PM package for 2018-19

Textiles | On 21st Apr 2018

Pak ministry proposes extension to PM package for 2018-19

Pakistani textile ministry has reportedly proposed extending the...

Interviews View All

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Anavila Misra
Anavila Collection

Fashion shows are also encouraging and highlighting sustainable fashion

Rashi Menda
Zapyle

Every fifth sale we make on Zapyle is a repeat purchase

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Igor Chapurin
Chapurin

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

Sonam & Paras Modi
SVA

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

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

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

Leave your Comments


April 2018

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

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.9%
No
12.6%
Skip
17.5%

Total Votes: 103

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

Yes No

Active Poll

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

Yes
63.1%
No
29.1%
Skip
7.8%

Total Votes: 103

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

Yes No

Active Poll

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

Yes
87.4%
No
8.7%
Skip
3.9%

Total Votes: 103

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

Active Poll

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

Yes
82.5%
No
7.8%
Skip
9.7%

Total Votes: 103


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