Daily global cotton market report
Last night in New York futures market, March 2009 closed at 49.98 with a gain of 12 points while the volume traded was 10563 contracts and the May 2009 closed at 50.61 with a gain of 18 points and the trading volume was 8191, while July 2009 was closed at 51.94 with a gain of 40 points and the trading volume was 2062 contracts. The Cot Look A index declared settled at 57.75 with no changes today.
The spot rate at KCA once again remained firm and strong and the settlement declared at Rs. 3400/= per maund today with no changes today. In the local market 600 bales of Rohri sold at Rs3300/= , 600 bales of Jahanian sold at Rs. 3400/= , 1000 bales of Shuja abad sold at Rs. 3400/= ,1000 bales of Mian Chunnu sold at Rs. 3400/= , 400 bales of Ghaziabad changed hands at Rs. 3400/= , 400 bales of Haroonabad changed hands at Rs. 3375/= , 400 bales of Dera ghazi khan changed hands at Rs. 3400/= , 400 bales of Jalal pur sold at Rs. 3400/= , 800 bales of Rahim Yar khan sold at Rs. 3450/= , while in another contract 7000 bales of Rahim yar khan sold at Rs. 3500/ .
Polyester prices are surprisingly surging in china with daily rises of 100 Yuan per ton. The sharp increase in raw material costs and a stronger demand in the post-holiday period are explaining the rebound in staple fiber and filament prices. Paraxylene and PTA were further gaining us$10 on Tuesday morning in Asia.
U.S. apparel imports from China surged in January 2009, in categories where quotas have been removed. The main victims of china's performance were in Central America and especially in Honduras while a series of Asian countries were also affected, as reflected by our statistical tables. Imports from Bangladesh and Vietnam remained strong, reflecting the current need of lower-priced products on a U.S. Market deeply affected by recession.
Demand for cotton yarns from Pakistan is relatively low on the international market. A weak level of interest is being reported from the Far East and Europe. Yarn exporters are now being asked to lower their prices although confronted with higher cotton prices on Pakistan's domestic market. Power is however back into spinning mills, with optimism therefore rising in the country.
India this week decided to subsidize cotton sales to the domestic textile industry. a decisive move which will offer some relief to Indian spinners while possibly putting pressure on international prices. The fate of rapidly rising Chinese reserves will also be key to future price levels on the market. Prices this week further soared in Pakistan where cotton shortage further looms, by contrast.
The market continues to consolidate in a very tight range since late January and open interest continues to hold steady. The upside seems limited by the potential continued weakness in world demand for cotton and the market has found underlying support from ideas that lower planted acreage in the US and China could boost prices eventually. May cotton closed slightly lower on the session Friday but has remained in a tight range for much of the month.