Home / Knowledge / News / Textiles / Bremen cotton price volatility defies logic
Bremen cotton price volatility defies logic
07
Feb '14
The current cotton price situation cannot be explained by either the statistical facts or any logic. While overall it is possible to speak of a high level, there is a lack of continuity. Volatility is predominant. In the last 10 days alone, the CIF Bremen Index ranged from 97.75 to 96.25 cents/lb. New York has an even a larger range to offer, from 88.13 to 85.01 cents/lb. The Cotlook A Index is also following the trend of the others and is hardly calming down.
 
This development cannot be explained by looking at global statistics, neither the high level nor the volatile performance. Global cotton stocks are high. The ICAC Secretariat in Washington estimates nearly 20 million tonnes, while in its January analysis the U.S. Department of Agriculture estimated even more than 21 million tonnes of end stocks for the 2013/14 season.
 
Nevertheless, most of this cotton is in China and is not available for the world market, although there are currently no reports of major supply shortages in trading. The situation is not balanced, with the supply outside China currently having a volume of roughly 8.5 million tonnes. Not too long ago, in the 2009/10 season, this volume corresponded to the entire world cotton stocks, including China.
 
The state-owned Chinese reserve continues to buy from the domestic and foreign markets. The reserve has now become the biggest seller in the world, exceeding even U.S. exports, which means that this remarkable stock position is expected to remain hugely relevant for the next few years. This season, more than 5.6 million tonnes were bought for the reserve and over 400,000 tonnes were sold. On 7th  February, after the Chinese Spring Festival, sales will continue.
 
 In its latest estimate, the ICAC is reporting a smaller harvest in the Northern hemisphere. The Northern hemisphere accounts for the largest part of the global cotton crop by far, with close to 90% of world production and for the current season the crop size is 7 percent lower than in the previous season. The U.S. is likely to harvest a significantly smaller volume in the current season (- 24%), while for the upcoming 2014/15 season a larger crop is projected. 
 
Another large decline of around 600,000 tonnes is expected in China in the current season, with a further reduction in the harvest in 2014/15. India (+200,000 tonnes) and Brazil (+380,000 tonnes) are expected to produce clearly higher cotton volumes in 2013/14.
 

Bremen Cotton Report


Must ReadView All

Textiles | On 26th Jun 2017

US initiates probe into PSF imported from 5 nations

The department of commerce of the US has initiated investigations for ...

Textiles | On 26th Jun 2017

Braskem invests in polypropylene production facility in US

The Board of Directors of Braskem, one of the largest producer of...

Textiles | On 26th Jun 2017

'Export promotion schemes to continue under GST regime'

The export promotion schemes will continue under GST regime, said...

Interviews View All

Nishank Patel
Shri Dinesh Mills Limited

Broad range of fabrics will sell well this financial year

Angelina Francesca Cheang
MY ANJE

'Consumers in the age-group 21 to 38 are driving the activewear trend'

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Urs Stalder
Sanitized AG

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

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

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

news category


Related Categories:
June 2017

June 2017

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

SUBSCRIBE


Browse Our Archives

GO


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