Daily global cotton market report
Last night in New York futures market, March 2009 closed at 45.03 with a loss of 80 points while the volume traded was 13556 contracts and the May 2009 closed at 46.47 with a loss of 52 points and the trading volume was 13851, while July 2009 was closed at 47.96 with a loss of 48 points and the trading volume was 3698 contracts. The Cot Look - A index declared settled at 55.35 with a decrease of 100 points 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 2000 bales of Choti (Dera Ghazi khan) at Rs. 3400, 1600 bales of Sahibabad at Rs. 3350, 600 bales of Sanghar sold at Rs. 3250/= .
The main feature circulating in cotton circles is when the global consumption will eventually bottom. The weak U.S. economic data continued with falling U.S. equity markets gives little indication of any stabilization in cotton off take in the near term.
China officially launched an anti-dumping investigation on imports of PTA from South Korea and Thailand which could push up prices to higher levels. PTA prices further surged in the last three days in Asia with polyester fibers and filament yarns also sharply increasing at the same time. Spandex prices did not decline for about 6 weeks in China and optimism is now back on this heavily depressed market. Demand from the domestic industry is rising since the end of lunar year holidays while exports of stretch fabrics may now climb in the near future. Raw material costs also stabilized since the start of the year.
U.S. apparel imports continued declining in December, finally losing 3% in US $ terms in the fourth quarter last year and 3.3% over full 2008. Imports from China surged in December, with the removal of U.S.quotas being clearly anticipated. Other supplying countries resisted in knit apparel categories while their woven apparel shipments to the United States were seriously sliding, as indicated by our series of statistical data.
According to the Dow Jones, US Business cut inventories by the most in seven years during December, adjusting supplies to a deepening recession. Inventories decreased by 1.3% to a seasonally adjusted $1.461 trillion. Inventories in November shrank by 1.1%, which was a revision down from a previously reported 0.7% decrease. Wall Street was looking for inventories to move down 1.0% during December.
The 1.3% drop is the sharpest since a record-low decline of 1.5% in October 2001. One reason inventories have fallen are the price declines amid the recession. Falling prices lower the value of inventories. But analysts say inventory volumes are down as well. Companies are adjusting for lower demand by consumers, who have slashed spending.”
According to the recently published figures of USDA the US export sales of U.S. raw cotton net upland sales of 109,400 running bales were up 18 percent from the previous week, but down45 percent from the prior 4-week average. Increases were reported for turkey (33,900 rb), Indonesia (12,300 b), Thailand (9,900 rb), China (9,700 rb), Bangladesh (8,000 rb), Vietnam (7,400 rb), Pakistan (6,700 rb), and Hong Kong (6,700 rb). Net sales of 3,000 rb for delivery in 2009/10 were for Mexico (2,100 rb) and South Korea (900 rb).