Daily worldwide cotton market report
Last night in New York futures market, May 2009 closed at 48.33 with a gain of 121 points, the July 09 closed at 49.10 with a gain of 117 points, while the October closed at 51.81 with a gain of 108 points. The “A” index once again declared settled at 55.40 with a decline of 100 points today.
The spot rate of KCA moved to another high and the settlement declared at Rs. 3500/= with an increase of Rs. 50/= today. In the domestic market 1800 bales of Rahim Yar khan sold at Rs. 3600/=, 1000 bales of Burewala sold at Rs. 3500/= to Rs. 3600/=. 600 bales of Sahiwal sold at Rs. 3580/=, 2500 bales of Chichawatni sold at Rs. 3580/= , 2825 bales of Kanpur changed hands at Rs. 3550/= , 1000 bales of Haroonabad sold at Rs. 3550/= , 600 bales of Faqirwali sold at Rs. 3550/= , 600 bales of Shahdadpur sold at Rs. 3500/= , 560 bales of Sanghar sold at Rs. 3450/= , and 200 bales of Tandoadam sold at Rs. 3450/= .
According to a local daily, “industrial production in the US. fell for the 14th time in the last 15 months as factories trimmed unwanted stockpiles. Output at factories, mines and utilities dropped 1.5 percent last month, more than anticipated and matching the prior month's decrease, according to a report from the Federal Reserve today in Washington. The amount of industrial capacity in use fell to 69.3 percent, the lowest level since records began in 1967. The Bloomberg professional global confidence index climbed to 21.2 in April from 5.95 in March, the biggest increase since the survey began in November 2007.
Readings below 50 means pessimists outnumber optimists. Sentiment climbed the fastest in Asia and the US as respondents around the world became more confident the worst may be over for their economies. Lenders from Citigroup inc. To JPMorgan chase and co. Said they made money in the first two months of the year as zero interest rates and central bank purchases of government debt led to a jump in home loans. At the same time, manufacturing is declining and unemployment rising amid a drop in global demand that may see world trade shrinks as much as 9 percent this year.”
Another article in the paper reported that, “the cost of living in the u.s. unexpectedly fell in March, underscoring Federal Reserve forecasts that prices will be contained in coming months. The consumer price index decreased 0.1 percent compared with a 0.1 percent gain projected by the median forecast of economists surveyed by Bloomberg news, according to figures from the labor department issued today in Washington. In the 12 months ended march, prices fell 0.4 percent, the first decline since 1955.”
Mr. Xu Wenying, president of the china cotton textile association has warned that Chinese yarn has lost competitiveness in the international market. Some mills have resorted to importing yarn instead of buying and spinning domestic cotton. Mr. Xu attributes some of the industry's ills to the current tax regime and quota system applied to cotton, and he foresees the result being some mill closures, an increase in unemployment and attendant social problems. However, other observers argue that overcapacity in the textile industry has resulted from the rapid investment of the past few years, and contend that less competitive mills should be left to wither during the present crisis.”