Interviews
Daily worldwide cotton & raw material report
20 Mar '09
4 min read
After a period of following the stock market closely, the cotton market seemed to ignore the surge in the stock market over the past few days and has consolidated recent gains in a tight range over the past few sessions. A lack of new buying interest yesterday and lingering concerns over weak global demand helped to limit the buying support from speculators.
December cotton traded moderately lower early in the session yesterday but a firm trade in grain markets and strength in crude oil and the stock market helped to support a recovery off of the early lows but December still closed slightly lower on the session.
Ideas that the market is a bit overbought after the recent jump and fears of generally weak demand ahead helped to pressure. February exports of textile and garments from china fell 35.1% from last year and were down 56.2% from January and this helped bring about talk of less cotton demand from china. The market seems to be in a position to see a further rally in new crop futures ahead of the USDA plantings report at the end of the month as long as outside market forces are not too negative.
Many traders seem to believe that planted area will be near 8.5-9.0 million acres for the coming season from 9.47 million last year which was already a 25-year low. The national cotton council from its annual survey of producers pegged plantings as low as 8.1 million. In china, a survey of producers from the china cotton association showed that farmers may plant 13.9% less cotton acres this year vis-à-vis last year.
December cotton traded moderately lower early in the session yesterday but a firm trade in grain markets and strength in crude oil and the stock market helped to support a recovery off of the early lows but December still closed slightly lower on the session.
Ideas that the market is a bit overbought after the recent jump and fears of generally weak demand ahead helped to pressure. February exports of textile and garments from china fell 35.1% from last year and were down 56.2% from January and this helped bring about talk of less cotton demand from china. The market seems to be in a position to see a further rally in new crop futures ahead of the USDA plantings report at the end of the month as long as outside market forces are not too negative.
Many traders seem to believe that planted area will be near 8.5-9.0 million acres for the coming season from 9.47 million last year which was already a 25-year low. The national cotton council from its annual survey of producers pegged plantings as low as 8.1 million. In china, a survey of producers from the china cotton association showed that farmers may plant 13.9% less cotton acres this year vis-à-vis last year.
Ghulam Rabbani & Co
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