Home / Knowledge / News / Textiles / Daily woldwide cotton market report
Daily woldwide cotton market report
25
Mar '09
Last night in New York futures market, May 2009 closed at 44.31 with a decline of 72 points, July 09 closed at 45.28 with a decline of 69 points, while October closed at 47.90 with a decrease of 82 points. The spot rate of KCA declared settled at Rs. 3250/= with and increase of Rs. 25/= today. Nearly 7800 bales have been brought to records been sold.

According to Cotlook, there is speculation that at least an additional 500,000 tonnes of cotton will be purchased by China for state reserves and the textile export rebate rate will be raised to 17%. Another article from Cotlook reported that, “Keqiao Textile Index, (a broad measure of textile prices, supervised by the Ministry of Commerce), has risen for the third consecutive week from 90.35 to 90.46, amid continuing reports of an upturn in trading activity in the primary textile sector.”

If we just look at the cotton market in isolation, it seems to make sense for the market to be stuck in a relatively tight range. On the one hand we have very supportive US export sales, with 2.7 million statistical bales of new commitments over the last two months, and mills are generally operating at decent margins at the current low prices. On the other hand we still have several origins that have yet to dispose of huge inventories, such as Central Asia, West Africa and India, which keeps the trade from getting too excited about a potential rally.

However, as many of us have learned in a painful lesson last year, the factors that drive commodity markets go far beyond the traditional supply and demand issues of a particular commodity. In the years leading up to the 2008 market crash, we saw commodity markets become a new playground for index and hedge funds. By piling hundreds of billions of dollars into commodity markets they tripled and quadrupled open interest and eventually forced prices to explode to the upside, often in the face of fundamental reasoning.

Then in late summer of 2008 the financial meltdown ensued, leading to massive deleveraging in just about every asset class, with the exception of government bonds. In this panic-like rush to liquidity, hedge and index fund long positions were cut dramatically. In the cotton market, outright spec longs in the futures market dropped from 13.4 million bales a year ago to just 3.1 million bales last week, while index funds cut their net long from 12.3 to 6.0 mio during the same time frame. Over the last few months this long liquidation has subsided and we are getting to the point where money from these sources is starting to flow back into the market.

Ghulam Rabbani & Co


Must ReadView All

Apparel/Garments | On 22nd Sep 2017

Govt announces new duty drawback rates for garments

The Government of India has today announced the new duty drawback...

Courtesy: ITMA

Textiles | On 22nd Sep 2017

ITMA 2019 to focus on smart garment technologies

ITMA 2019, the world's largest textile and garment technology...

Apparel/Garments | On 22nd Sep 2017

New US FTC rule for RN used on textile product labels

The US Federal Trade Commission recently streamlined requirements...

Interviews View All

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Abhimanyu Singh Rathore & Barbara Anna Kosiorek
Kannbar

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

September 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search