Home / Knowledge / News / Textiles / NY cotton futures slip marginally as Dec & Mar shed weight
NY cotton futures slip marginally as Dec & Mar shed weight
18
Oct '14
As December declined 38 points to close at 63.56 cents/lb, while March shed 56 points to close at 61.71 cents/lb, New York cotton futures moved slightly lower this week.

Another round of severe weather in the Delta and Southeast combined with some additional spec short covering lifted December to a high of 65.65 cents earlier this week, but improving weather conditions and renewed economic worries precluded any further advances for now.

Last week’s CFTC report confirmed that it was spec short covering that lifted December nearly 500 points off its lows, while the trade used the opportunity to expand its still meager net short position.

During the week ending on October 7, the trade increased its net short by 0.9 million bales to 3.4 million bales, while speculators reduced their net short by the same amount to 2.4 million bales. Index funds remained 5.8 million bales net long, the Plexus market report informs.

Interestingly, the change in the trade’s net short position was mainly the result of trade long liquidation rather than new shorts, which probably means that merchants were finally able to get some cotton out of grower hands.

However, the flow of cash cotton into the marketing channel remains rather slow at this point, as only 2.1 million warehouse receipts have so far been issued.

Fortunately the weather is looking quite favorable at the moment and harvest should therefore gain momentum over the coming weeks.

Nevertheless, a somewhat irregular growing season and several rounds of heavy rain in recent weeks has shippers concerned regarding quality and it will still be another 4-5 weeks before a clearer picture of the crop will emerge.

Last Friday’s USDA supply/demand report played right into the current market scenario, with a short-term bottleneck situation eventually giving way to a longer-term oversupply outlook.

The USDA lowered the US crop to 16.26 million bales, thereby reducing total supply for the season to 18.7 million bales, of which more than half is already committed to domestic and overseas buyers.
This creates even more urgency among merchants to get their hands on premium cotton early on.

However, the USDA numbers leave no doubt that the ROW should sooner or later transition to a substantial oversupply situation. The USDA estimates that ROW stocks will grow from 38.6 to 45.0 million bales over the course of this season.

US and India will shoulder the bulk of this inventory build-up, seeing their stocks rise by 2.45 and 2.30 million bales, respectively, followed by increases in West Africa of 0.55 million bales and Central Asia of 0.52 million bales.

In the Northern Hemisphere, stocks will probably start to build from January onwards and it therefore can be expected that the market will reflect carrying charges between March and July futures in order to provide an incentive for merchants and/or growers to hold inventory.


Must ReadView All

Pakistani textile associations want uniform energy pricing

Textiles | On 21st Feb 2018

Pakistani textile associations want uniform energy pricing

Pakistan’s textile industry association representatives have...

Japan’s JICA promoting energy-saving devices in Bangladesh

Apparel/Garments | On 21st Feb 2018

Japan’s JICA promoting energy-saving devices in Bangladesh

The Japan International Cooperation Agency (JICA) is promoting use of ...

Courtesy: Indorama Ventures

Textiles | On 21st Feb 2018

IVL 2017 revenue up 17% y-o-y to $8,438 million

Indorama Ventures Public Company Limited (IVL) has reported revenue...

Interviews View All

Mandeep Nagi
Shades of India

Women value something that is unique and has a flavour of India

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Urmil Arya

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

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Mohammad Hassan
Biax Fiberfilm

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

Marten Alkhagen
Swerea IVF AB

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

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Tony Ward
Tony Ward

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

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

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

February 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
70.6%
No
12.7%
Skip
16.7%

Total Votes: 102

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
63.7%
No
29.4%
Skip
6.9%

Total Votes: 102

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
88.2%
No
8.8%
Skip
2.9%

Total Votes: 102

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
83.3%
No
7.8%
Skip
8.8%

Total Votes: 102


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