Home / Knowledge / News / Textiles / NY futures move sharply higher
NY futures move sharply higher
04
Jun '11
NY futures moved sharply higher this week, with July rallying 1321 points to close at 164.24 cents, while December gained 1266 points to close at 139.23 cents.

Memorial Day weekend has come and gone without bringing any significant relief to the drought-stricken areas of West Texas. Apart from a few isolated thunderstorms the region has remained mostly dry and the 7-day forecast doesn't look too promising either. With no rain in sight and insurance deadlines approaching, many dryland acres will not get planted this season, but it is not just dryland that has traders worried. Above average temperatures accompanied by strong and persistent wind have affected irrigated fields as well, although it is too early to assess the impact.

Growers in the Mid-South and Southeast had to contend with an array of problems as well, as some areas received way too much water, while others didn't get nearly enough, plus there were issues with insects and damage from strong wind and hail. Overall the US crop is off to a rocky start and production expectations will therefore have to be adjusted lower. It is difficult to estimate where exactly the US crop stands, because there is still time to rectify some of the problems, but unless we see an immediate improvement we are afraid that the US crop won't yield much more than 16.5 million bales.

The outlook for a smaller US crop will have implications on the export front. Unlike in previous years, the US has already committed around 5.8 million statistical bales for export next season, which compares to just 1.4 million bales of forward sales a year ago. Combined with the 3.8 million bales in domestic mill use, the total number of bales owed is therefore approaching the ten million mark or roughly 60% of potential production.

This means that shippers will be forced to step on the breaks in regards to additional sales, until the quantity and quality of the coming crop are known. As a result US export sales are likely to 'disappoint' over the next few months, but that will be mainly due to a lack of available offers rather than a lack of willing buyers.

Other origins will have to pick up the slack, but many of them don't have the same logistical capability as the US. While the US is able to ship 400'000 to 500'000 bales in a week, movement out of the CIS, India and other potential exporters tends to be a lot slower and cumbersome. Therefore, mills that have yet to cover third and fourth quarter requirements would be well advised not to wait too long before doing so.

The big de-certification of nearly 143'000 bales reduces the certified stock to just 52'035 bales, its lowest level since November 19 last year. This is likely to make many of the remaining 63'431 shorts in July quite nervous, especially since new crop doesn't look that great at the moment. Merchants who own current crop inventory may want to hold on to it as 'insurance' against a potential shortage of new crop high grades.


Must ReadView All

Building of Ethiopian textile unit by Chinese firm starts

Textiles | On 22nd Jan 2018

Building of Ethiopian textile unit by Chinese firm starts

Chinese firm Wuxi No. 1 Cotton Mill will build a textile plant in...

JD.com to invest $3.1 bn to revive industry in NE China

Apparel/Garments | On 22nd Jan 2018

JD.com to invest $3.1 bn to revive industry in NE China

To back the government’s campaign to revitalize the traditional...

SIMA makes pre-budget recommendations to Indian govt

Textiles | On 22nd Jan 2018

SIMA makes pre-budget recommendations to Indian govt

Exemption of 5 per cent goods and services tax (GST) on raw cotton,...

Interviews View All

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Angelina Francesca Cheang
MY ANJE

'Consumers in the age-group 21 to 38 are driving the activewear trend'

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Urmil Arya

Sushila International, a well established textile organisation established ...

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

Mark Paterson
Technical Absorbents Ltd

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

Silke Brand-Kirsch
Schlegel und Partner

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

Mohammad Hassan
Biax Fiberfilm

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

Yash P. Kotak
Bombay Hemp Company

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

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

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

January 2018

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
69.1%
No
13.4%
Skip
17.5%

Total Votes: 97

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
63.9%
No
28.9%
Skip
7.2%

Total Votes: 97

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
87.6%
No
9.3%
Skip
3.1%

Total Votes: 97

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
82.5%
No
8.2%
Skip
9.3%

Total Votes: 97


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