Home / Knowledge / News / Textiles / NY market continues to go down
NY market continues to go down
13
May '11
NY futures continued to slide, with July dropping 256 points to close at 144.30 cents, while December gave up 289 points to close at 119.19 cents.

The return of some mill buying for nearby shipment allowed the market to catch its breath for a few days, with July trading as high as 155.12 cents on Wednesday. But the recovery proved to be nothing more than a "dead cat bounce", as mills have since returned to the sidelines and the market has resumed its downtrend.

The US export sales report of this morning displayed a familiar picture, as for every current crop bale that was able to find a home there was another one that got cancelled. Last week 59'500 running bales were sold for the current marketing year, while 61'300 running bales got cancelled, resulting in yet another net reduction of 1'800 running bales. On the other hand commitments for the 2011/12 marketing year continued to grow by 76'000 running bales and now amount to nearly 5.8 million statistical bales.

On Wednesday the USDA provided us with their first detailed estimate for the 2011/12 season. For the first time in six years, the world is expected to produce more than it consumes, thereby reversing a trend of sharply declining stocks.

Since the 2006/07 season global stocks have been reduced by nearly 20 million bales to just 42.5 million bales, which equal a little more than 4 months of global mills use. However, since the statistical snapshot is taken on July 31, most inventories will be nearly depleted by the time new crop comes off the field this fall.

The USDA forecasts world production at an all-time high of 124.7 million bales, which would surpass the record from 2006/07 by around 2.9 million bales. Since the US crop is expected to be more or less unchanged at 18.0 million bales, the rest of the world will have to produce a crop that is 10.2 million bales bigger than in the current season. The USDA believes that China will get to 33 million bales (7.185 million tons), while India will grow a record 27 million bales (34.6 million Indian bales). While this is certainly possible, a lot needs to go right in order to get there.

While production is expected to soar, the USDA counts on continued demand destruction to keep global mill use subdued at just 119.5 million bales. Although that amounts to 3 million bales more than in the current season, it is still 4.3 million shy of the record 123.8 million bales that were consumed during the 2006/07-season.

You may recall that in its December 2007 report the USDA projected global mill use to reach as much as 128.27 million bales in the 2007/08 season. Then the financial crisis happened! But has demand really suffered such a blow that it is nearly 9 million bales below the potential of four seasons ago? We seriously doubt it!

Although retail demand has remained stagnant in the US and Europe in recent years, it has been growing by leaps and bounds elsewhere around the globe, especially in China and India. World population alone has grown by 300 million people over the last four years and is expected to cross the 7 billion people mark by the end of this year. We therefore believe that the consumption number may harbor a positive surprise as we head into the coming season.

Must ReadView All

Courtesy: American Apparel

Apparel/Garments | On 25th Feb 2017

Gildan to make some American Apparel products outside US

Gildan Activewear, which recently acquired US fashion brand American...

Courtesy: Kolon Sport

Apparel/Garments | On 25th Feb 2017

Kolon Sport to set up JV with ANTA for Chinese market

Kolon Sport, an outdoor gear and clothing brand of Korea based Kolon...

Designer Karishma Jumani with Niraj Jawanjal, founder and director of IIFW. Courtesy: IIFW

Textiles | On 25th Feb 2017

IIFW to bring together premium lingerie brands

India Intimate fashion Week (IIFW), dedicated to showcasing the...

Interviews View All

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Eric Scholler
Groz-Beckert

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

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Bani Batra

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

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

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
February 2017

February 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search