Home / Knowledge / News / Textiles / Export sales report once again disappoints market
Export sales report once again disappoints market
24
Oct '09
NY futures consolidated recent gains, with December advancing 91 points to close at 68.55 cents.

Although the weather remains a concern to the market, it is probably not what kept values so well supported this week. This honour goes to the speculative community, which continued to commit substantial amounts of new money to cotton and other commodities.

On June 24 open interest stood at just 105'969 contracts, but this morning it measured 178'718 contracts, an increase of over 68 percent in less than four months! But even more amazing is that fact that over the last 13 sessions alone (not counting today), open interest has shot up by 34'000 contracts, with most of the additional longs belonging to specs and to a small degree index funds, while the trade accounted for the majority of new shorts.

The latest CFTC report of October 13 showed the trade 12.5 million bales net short in Futures and Options, while positions related to index funds amounted to 7.7 million bales net long and all other speculators combined had the remaining 4.8 million bales in net longs. Since then the trade position has probably grown close to 14.0 million bales net short and one has to wonder how much more the trade is able and willing to add to this position. We all know how powerful the speculative community is and the only factors that may restrict them besides their own view of the market are position limits and somewhat stricter CFTC regulations. But where there is a will there is a way to get that money into the market and that's what the trade needs to be mindful of if it wants to avoid another debacle like in March last year.

The trade is seemingly still counting on the certified stock to put a lid on the market and to force values lower as we head towards the December notice period. Since last week the certified stock has added another 10'000 bales and it now amounts to roughly 385'000 bales. With prices as high as they are, this number will probably keep growing as more tenderable new crop cotton becomes available. We would not be surprised to see the certified stock at well over half a million bales in a month from now. However, while we believe that at the current spread of just 213 points between December and March the market may need to go lower to find a taker, a substantial widening of the spread to let's say 450 or 500 points during the upcoming rolling period may eliminate the necessity for a price drop, as a potential taker could take it based on the spread alone, regardless of where the market trades. In a season like this, with premium qualities in limited supply, it has a certain appeal to gain control over the certified stock.

Today's export sales report was once again seen as a disappointment by the market, as exactly 100'000 running bales of new sales in Upland and Pima were offset by cancellations of 44'700 bales. Total commitments for the current season are now at 3.6 million statistical bales, which are 3.0 million bales less than last year. However, with less than 433'000 bales of new crop classed as of last week and with prices much higher than those of competing growths, it is not surprising that US sales are not taking off at this point.


Must ReadView All

India begins review of anti-dumping duty on caustic soda

Textiles | On 23rd Nov 2017

India begins review of anti-dumping duty on caustic soda

The Directorate General of Anti-Dumping & Allied Duties (DGAD), under ...

Sri Lanka to set up 150 mini apparel units

Apparel/Garments | On 23rd Nov 2017

Sri Lanka to set up 150 mini apparel units

A mini apparel factory was opened recently at Sri Lanka’s Menik Farm...

Japanese stores witness dip in apparel sales in October

Apparel/Garments | On 23rd Nov 2017

Japanese stores witness dip in apparel sales in October

Sales of apparel, both in department stores and in retail chain...

Interviews View All

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Nitin Bhatia
Trend Arrest

Setting up a brand for online selling is easy, but running the brand is not

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Harmeet Singh

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

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

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

November 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
68.5%
No
12.4%
Skip
19.1%

Total Votes: 89

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
61.8%
No
30.3%
Skip
7.9%

Total Votes: 89

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
86.5%
No
10.1%
Skip
3.4%

Total Votes: 89

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
80.9%
No
9.0%
Skip
10.1%

Total Votes: 89


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