Home / Knowledge / News / Textiles / NY cotton futures rally & regain lost ground
NY cotton futures rally & regain lost ground
08
Jun '13
NY futures jumped this week, as July rallied 474 points to close at 84.87 cents, while December gained 256 points to close at 85.39 cents.
 
After nine consecutive losing sessions at the end of May, during which the spot month lost more than 700 points, the market came back with a vengeance this week, with July reclaiming over 500 points since Monday. The market had simply gotten too cheap after widespread spec liquidation forced values temporarily below 80 cents last week, creating a big opportunity for cash buyers. 
 
The US export sales report confirmed that this unexpected price drop facilitated a lot of business last week. Net new sales for both marketing years amounted to 323’600 running bales, with China taking once again the lion’s share with 134’700 running bales, followed by 13 other markets.
 
Shipments were excellent as well at 307’100 running bales, leaving just a little over two million bales to be shipped. Total commitments for the current season are now at 13.6 million statistical bales, of which 11.6 million bales have already been exported.
 
The US statistical situation is getting rather tight after this latest round of sales.  We started this season with total supply of 20.7 million statistical bales, of which 13.6 million bales have so far been committed for export and 3.4 million bales go to domestic mills.
 
This leaves theoretically 3.7 million bales for sale, but we have to reserve at least 0.9 million bales for domestic mill use between August and October and we further estimate that around 1.3 million of the 2.0 million bales in new crop export commitments will be shipped from current supplies. In other words, after subtracting these future commitments, there may only be 1.5 million bales of US cotton still available, and this number includes the certified stock of 0.5 million bales. A few more weeks of decent export sales and buyers will be scraping the barrel! 
 
While China has been actively buying the recent dips in the market, many mills around the globe seem to be a bit too nonchalant in covering their remaining needs for the second and third quarter, believing that there will be plenty of supplies to choose from once they finally make up their mind. We are afraid that this may not be the case and that this casual attitude may come back to haunt a lot of these buyers.
 
We can hardly remember a time when available supplies outside of China were as tight as now. The US is down to the last 1.5 million bales, Australia may have just 1.0 million left and most other origins (India, Brazil, Africa) don’t have vast amounts to offer either. Central Asia still has a fair amount of cotton, but political and logistical constraints are preventing it from coming to the market in any significant volume. We would therefore advise mills to cover their July to October shipments with a sense of urgency, before certain qualities become scarce or prices run away to the upside. 

Must ReadView All

Courtesy: Kornit Digital

Textiles | On 28th Feb 2017

'Customisation is an advantage of digital printing'

Changing business models and companies' decision to reduce their...

Textiles | On 28th Feb 2017

China's textile & apparel exports up 10.2% in Jan 2017

Exports of textiles and garments from China resumed growth in the...

Apparel/Garments | On 28th Feb 2017

Delta Galil's Q4 operating profit jumps 80%

In the three months to December 31, 2016, operating profit at apparel ...

Interviews View All

Marazban F Velati
Sutlej Textiles & Industries limited

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

Arvind Saraf
Triveni Sarees

e-Commerce is still evolving fast with constant flux and surprises

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Mark Paterson
Technical Absorbents Ltd

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

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Kevin Nelson
TissueGen

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

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Pranav Mishra
Huemn

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

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
February 2017

February 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