Home / Knowledge / News / Textiles / NY futures trade sideways this week
NY futures trade sideways this week
13
Jun '09
NY futures traded sideways this week, with July dropping 58 points to close at 56.30 cents, while December gained 17 points to close at 61.26 cents.

The main feature this week was the widening of the July/Dec spread, which increased from 421 points last Thursday to 496 points as of today's close. The current spread should ensure that there will be a taker for this growing certified stock (383'645 bales and counting), despite the fact that New York futures remain several cents overpriced in comparison to the cash market.

Other than that the cotton market continued to pay close attention to what is happening in the outside markets. The dollar tried a comeback early in the week but has since started to weaken again. The current ratio of nearly 1-to-20 of cotton is quite stretched based on historical norms and suggests that cotton is too cheap. Taking other factors such as inflation and a weaker dollar into account, it may be more plausible that cotton is lagging behind than the other way around.

This week's USDA supply/demand report did not contain any major surprises, although it signaled a further tightening of world ending stocks. The biggest changes in the report included production decreases for the current season in India (-500'000 bales) and Brazil (-300'000 bales), while Pakistan's mill use was raised by 500'000 bales. Ending stocks were lowered by another 1.16 million bales at the end of this season to 61.16 million bales, while they are expected to drop to just 56.54 million bales in the 2009/10 season. This would be a noticeable change from the 61.0 to 63.0 million bales of stocks the world has gotten used to over the previous four marketing years.

Noteworthy in regards to the US statistics is that exports for the 2009/10 season were lowered to just 10.8 million bales, which would be the lowest export number in 9 years. When looked at in terms of world trade, only 1 out of every 3 bales is expected to come from the US in the coming season, which is the lowest ratio since the 2000/01 marketing year. In the current season the US needed to capture one out of every 2.23 bales sold in the export market, while last year the ratio was 1 out of every 2.83 bales.

Even though the US is expected to export 1.9 million bales less next season, ending stocks are still going to shrink by another million bales to just 5.6 million bales in 2009/10, which would be the lowest stock level in five years. Also, when we look at the export sales report that was released this morning, we notice that there will be at least a million bales carried over at the end of July, because commitments to date amount to 13.7 million statistical bales, while shipments are believed to reach 12.7 million bales.

Further, there are another 0.8 million bales that have so far been sold for August onward shipment. This means that as of today there are already 1.8 million bales on the books that count against the projected 10.8 million bales of exports in the 2009/10 season.


Must ReadView All

Coats acquires yarn manufacturer Patrick Yarn Mill

Textiles | On 12th Dec 2017

Coats acquires yarn manufacturer Patrick Yarn Mill

Coats, the world’s leading industrial thread manufacturer, has...

India’s garment imports from Bangladesh up 56% post-GST

Apparel/Garments | On 12th Dec 2017

India’s garment imports from Bangladesh up 56% post-GST

India has imported $87.4 million worth of readymade garments from...

Courtesy: Badger Sportswear

Apparel/Garments | On 12th Dec 2017

Badger Sportswear acquires Alleson Athletic

Badger Sportswear, a leading manufacturer of athletic apparel and...

Interviews View All

Kaizad Hansotia
GetNatty

Competition is the best thing that can happen to a startup

Mandeep Nagi
Shades of India

Women value something that is unique and has a flavour of India

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Steve Cole
Xerium Technologies

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

Eric Scholler
Groz-Beckert

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

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Yash P. Kotak
Bombay Hemp Company

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

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

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

December 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
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

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
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

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
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

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
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


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