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: Bruckner

Textiles | On 3rd Dec 2016

Indian textile companies opt for Brückner stenter lines

Indian textile firms Laxmipati Sarees, makers of polyester sarees and ...

Textiles | On 2nd Dec 2016

Indian currency crisis impacts global cotton market

The currency crisis in India, marked by insufficient supply of new...

Huang Wei from Fiber Raw Material Dept of Sinopec Chemical Commercial Holding speaking at the Forum

Textiles | On 2nd Dec 2016

Huge potential for nylon consumption: Experts

There is huge potential for increase in nylon consumption said...

Interviews View All

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Eric Scholler
Groz-Beckert

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

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...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

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
December 2016

December 2016

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

SUBSCRIBE


Browse Our Archives

GO


Advanced Search