Daily worldwide cotton & raw material report
Last night in New York futures market , May 2009 closed at 41.72 with a decrease of 113 points, the trading volume was 7996, while July 2009 closed at 42.63 with a loss of 102 points, the trading volume was 3383 contracts, October 2009 closed 45.37 with a loss of 90 points, no contracts were traded in October 09 cover . The Cot Look – A index declared settled at 51.50 with a decrease of 15 points today.
The spot rate at KCA remained same and declared settled at Rs. 3150/= per maund with no changes today. In the local market rare business notified today. But 800 bales sold in Yazman at Rs. 3225/=, and 1550 bales traded in Bahawalpur at Rs. 3150/=.
According to recently published figures of PCGA total of Pakistan as on March 15 is 11,304,462 running bales, out of which textile mills have taken 9,830,704 running bales and the exporters 294,665 RB, while TCP has taken 180,333 RB. Total stock (pressed bales 9,76,920 + Phutti 21,840) totals to 998,760.
Cotlook said that, “Xinjiang's cotton area will decrease 7 percent. As a result of a recent survey of intentions, the Xinjiang bureau of agriculture concludes that the region's cotton area might decrease this year by around 7 percent, to 23 million mu (1 hectare = 15 mu), which is a smaller reduction than anticipated a month or so ago.
The area under wheat is predicted to expand by 3 million mu to 13 million mu, which would be the largest during the past four years. Observers comment, however, that the suitability of land for cotton production in Xinjiang remains a major factor.”
A second article in Cotlook reported that, “The China cotton index rose by 31 Yuan, to 11,577 Yuan per tonne, or 76.81 cents per lb. Physical cotton prices continue to be assisted by the state reserves procurement process (2,522,950 tonnes have been purchased to date, including 1,366,900 from Xinjiang).
Only another 200,000 tonnes or so remain to be procured to reach the current target of 2,720,000 tonnes. Rumor has persisted that the latter figure will be increased, with a focus placed on absorbing additional supplies from Xinjiang, though no official indication to this effect has been forthcoming.”
An article in Bloomberg reported that, “the cost of living in the US rose more than forecast in February, easing concern that the inflation rate will fall below the Federal Reserve's preferred level. The consumer price index rose 0.4 percent after a 0.3 percent increase in January, the labor department said today in Washington. Excluding food and fuel, the so-called core rate climbed 0.2 percent for a second month. Fuel, clothing and automobile costs led the advance last month.”
Cotton and polyester prices heavily fell in China, India and Pakistan from their level a year ago. However, prices declined more sharply in China than in the two other leading textile countries in Asia. Thanks to the fall in the rupees, China's advantage is eliminated in the cotton market when considering in US dollar prices. On the polyester market however, China retains a decisive gain in terms of price competitiveness.