Home / Knowledge / News / Textiles / NY cotton futures show mixed reactions last week
NY cotton futures show mixed reactions last week
06
Oct '14
New York cotton futures ended the previous week mixed, with December going up 45 points to close at 61.85 cents/lb, while March fell 51 points to 60.53 cents/lb.

While December managed to stand its ground this week, the deferred contracts came under additional pressure as the market continued to discount a long-term bearish scenario from which it may be difficult to escape for years to come.

“As a result, the Dec/March inversion expanded by nearly 100 points this week, with the spread closing today at 132 points,” the Plexus cotton market report informs.

Over the last five seasons, global output has exceeded mill use by 58.9 million bales and it was only thanks to China’s willingness to absorb the entire surplus that international cotton prices remained at elevated levels.

This has of course changed this season, since China is no longer willing to carry the load all by itself and is shifting some of the burden back to the ROW.

The market is still in the process of figuring out how much of an impact this will have on the ROW balance sheet, which depends mainly on factors like crop size as well as Chinese cotton and yarn imports.

The best guess at this point is that ROW stocks will grow by some 6-7 million bales over the course of the season to around 44-45 million bales, which would be slightly higher than the current USDA estimate of 43.4 million bales.

Although governments in the US and India, may temporarily assist in carrying the increasing stock burden, it will ultimately be the trade, that will have to hold the bulk of these inventories and in order to facilitate this task, one will eventually be able to see full carrying charges between the various futures months, starting with the March contract.

December will most likely continue to detach itself from the rest of the board since it follows different supply/demand fundamentals.

While there may be more than enough cotton available after the turn of the year, the pipeline is currently about as empty, as ever seen before and with the US crop being later than normal, it may take some time to restore supply flows.

Weather remains a concern in that regard, especially when it comes to West Texas. Most fields in the Lubbock area still need a few more weeks until they are finally ready for harvest and they therefore remain vulnerable to the cooler and wetter conditions that are forecast by the longer-range models.

The recent nosedive of the Arctic Oscillation index, which shows the most negative readings for October since 2002, is likely to send cold, Arctic air deep into the US over the coming weeks, while the storm track also remains farther south.

What worries not so much the size of the crop, but quality and fiber characteristics, since growing conditions have been challenging this season. Merchants are taking a chance by continuing to push sales of US cotton without knowing the quality composition of the crop yet and this could backfire if the weather doesn’t cooperate over the next 4-6 weeks.


Must ReadView All

Indian govt approves special package for leather, footwear

Textiles | On 16th Dec 2017

Indian govt approves special package for leather, footwear

The Union Cabinet chaired by PM Narendra Modi has approved a special...

EU parliament resolution calls for Cambodia sanctions

Apparel/Garments | On 16th Dec 2017

EU parliament resolution calls for Cambodia sanctions

Following the ongoing crackdown in Cambodia on the opposition and...

Affordable prices to be hit if US pulls out of NAFTA: NRF

Apparel/Garments | On 16th Dec 2017

Affordable prices to be hit if US pulls out of NAFTA: NRF

US retailers’ ability to offer consumers quality products at...

Interviews View All

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Urmil Arya

Sushila International, a well established textile organisation established ...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Kai Poehler
Voith Paper GmbH & Co. KG

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

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Robert Brunner
Devereux

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

Madhu Jain
Madhu Jain

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

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 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
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

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
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

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
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

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
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


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