Home / Knowledge / News / Textiles / NY cotton futures edge up marginally this week
NY cotton futures edge up marginally this week
28
Sep '13
NY futures edged up slightly this week, as December gained 75 points to close at 85.47 cents, while March advanced 72 points to close at 85.18 cents.
 
After a string of dull, low volume sessions, the market finally showed some signs of life today following several news stories out of India and China.  
 
In India heavy rain apparently inundated parts of Gujarat and Maharashtra yesterday, although there are differing views among traders regarding the impact on cotton, ranging from problematic to beneficial. Nevertheless, recent rains in the US, China and now India are reminding traders that these generally late crops are still exposed to potentially harmful weather over the coming weeks.
 
At a China Cotton Association (CCA) meeting a number of speakers offered their opinion on China’s supply/demand situation this week, and while estimates varied greatly, the common theme was that planted acreage is lower than estimated and that yields are likely going to disappoint due to a variety of adverse weather conditions during the growing season.
 
The Ministry of Agriculture came up with a crop estimate of just 29.0 million statistical bales, while the CCA was more optimistic at 31.8 million bales. However, both guesses are below the current USDA estimate of 33.0 million bales!
 
Interesting too was that the CCA sees China’s production gap this season at 7.2 million statistical bales (crop of 31.8 versus consumption of 39.0), whereas the USDA projects a shortfall of just 3.0 million bales (crop of 33.0 versus consumption of 36.0).
 
We tend to agree with the CCA, as well as the US Ag attaché in Beijing, and feel that China’s mill use has been underestimated by some 3-4 million bales. As previously explained, inventories outside the Reserve seem to be a lot tighter than the USDA numbers imply and this can only be explained by higher consumption.
 
If our assumption were correct, it would be even more remarkable considering that China has been importing yarn and fabric at a torrid pace in recent months. In August, China imported a record 180’955 tons of cotton yarn, bringing the total for the first eight months of the calendar year to 1.18 million tons, or nearly 50% more than in 2012.
 
Another statistic from China that points to stronger mill use is the 2.94 million tons yarn production number, which includes all fibers. The cumulative figure for the first eight months of 2013 is over 8 percent ahead of last year at 22.6 million tons.
 
Although there is no doubt that cotton continues to lose market share to man-made fibers, one nevertheless has to wonder whether cotton consumption has indeed dropped from 50.0 to just 36.0 million bales since 2006, while yarn output has doubled during that same period.


Must ReadView All

Pakistan govt notifies 50% duty drawback on exports

Textiles | On 21st Oct 2017

Pakistan govt notifies 50% duty drawback on exports

The Pakistan government has notified the ‘Duty Drawback of Taxes...

Ghana sets up task force to clamp down on textile piracy

Textiles | On 21st Oct 2017

Ghana sets up task force to clamp down on textile piracy

Ghana’s ministry of trade and industry has set up a taskforce to...

Courtesy: Coach

Fashion | On 21st Oct 2017

US company Coach to change name to Tapestry from Oct 31

Coach Inc., a New York-based house of modern luxury accessories and...

Interviews View All

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Nisha Chanda
Whistling Woods International School of Fashion

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

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

October 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

Active Poll

Do you see sustainability as a route to business growth?

Yes
77.1%
No
12.9%
Skip
10.0%

Total Votes: 70

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
61.4%
No
28.6%
Skip
10.0%

Total Votes: 70

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
85.7%
No
10.0%
Skip
4.3%

Total Votes: 70

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
75.7%
No
11.4%
Skip
12.9%

Total Votes: 70


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