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

Courtesy: Fashion Revolution/Fashion Transparency Index

Apparel/Garments | On 23rd Apr 2018

Transparency helps in swiftly alerting brands

Disclosing key supplier, supply chain and operational information...

Japan’s clothing imports up 4% in fiscal 2017

Apparel/Garments | On 23rd Apr 2018

Japan’s clothing imports up 4% in fiscal 2017

Japan’s imports of clothing and accessories increased by 4 per cent...

Courtesy: Fashion Revolution/Fashion Transparency Index

Fashion | On 23rd Apr 2018

Top global fashion brands now more transparent

Fashion Revolution’s Fashion Transparency Index 2018 reveals Adidas...

Interviews View All

Headhonchos
Indian textile value chain

Adopt innovative techniques, go for automisation rather than being...

Arvind Saraf
Triveni Sarees

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

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

Nitesh Mittal

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

C Dhandayuthapani

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

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Johan Berlin
InvestKonsult Sweden AB

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

Kevin Nelson
TissueGen

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

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Cigdem Akin
Cigdem Akin

She has carved a niche for herself as the national brand of Turkey. Her...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Tony Ward
Tony Ward

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

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