Interviews
Volatility in cotton market seems to be on decline
28 Jun '08
4 min read
The only sales have been for immediate needs only. Too, while prices are subject to another slip, they will fall only marginally below 70 cents, if that much. The current pace of shipments suggests that USDA will have to lower its 13.9 million bale export estimate 200,000 bales, down to 13.7 million.
Weekly export shipments totaled only 286,600 RB. Upland shipments accounted for 282,200 RB. Pima shipments were 4,400 RB. Primary destinations for Upland were China (95,400 RB); Turkey and Mexico. The primary destinations for Pima shipments were Indonesia (1,900 RB); Japan and India.
Domestic consumption continues to wane as U.S. textile mills used cotton during May at the annualized rate of 4.5 million bales. The annualized usage during April was revised 100,000 bales lower, down to 4.6 million. Annualized consumption during the first nine months of the 2007-08 marketing year stands at 4.5 million bales.
The current USDA projection for the marketing year is 4.6 million bales and will likely be lowered 100,000 bales, down to 4.5 million. USDA current forecasts 2008-09 domestic usage at 4.3 million bales. The 2006-07 usage, just a year ago, was 4.8 million bales. Thus, domestic cotton consumption in the U.S. is losing an average of 250,000 bales a year.
The USDA report could well be the impetus that pushes December to near 85 cents. Cotton will have to follow suit to maintain planted acreage just at 8.5 million acres in 2009. Volatility, volatility and more volatility.
Weekly export shipments totaled only 286,600 RB. Upland shipments accounted for 282,200 RB. Pima shipments were 4,400 RB. Primary destinations for Upland were China (95,400 RB); Turkey and Mexico. The primary destinations for Pima shipments were Indonesia (1,900 RB); Japan and India.
Domestic consumption continues to wane as U.S. textile mills used cotton during May at the annualized rate of 4.5 million bales. The annualized usage during April was revised 100,000 bales lower, down to 4.6 million. Annualized consumption during the first nine months of the 2007-08 marketing year stands at 4.5 million bales.
The current USDA projection for the marketing year is 4.6 million bales and will likely be lowered 100,000 bales, down to 4.5 million. USDA current forecasts 2008-09 domestic usage at 4.3 million bales. The 2006-07 usage, just a year ago, was 4.8 million bales. Thus, domestic cotton consumption in the U.S. is losing an average of 250,000 bales a year.
The USDA report could well be the impetus that pushes December to near 85 cents. Cotton will have to follow suit to maintain planted acreage just at 8.5 million acres in 2009. Volatility, volatility and more volatility.
O.A. Cleveland
Popular News
Leave your Comments
Editor’s Pick
Kimberly Morgan and Rik Veltman
K3 Business Technology Group PLC
Esteemed Clients
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
