Home / Knowledge / News / Textiles / ICE cotton settles slightly lower this week
ICE cotton settles slightly lower this week
19
Oct '13
ICE cotton settled slightly lower this week, closing at 83.11 basis Z3. Growing cert stocks and lower YoY Chinese cotton imports in September prompted bearish headlines that, along with sagging technicals and ideas that the US crop may be revised a million bales higher on the next (November) WASDE report, likely scared specs from the market.

The headlines are exaggerated though as cert stocks simply represent relatively undesirable qualities stopped in July and will be limited, or maybe not delivered at all. And it certainly wasn’t a lack of demand holding the market down, as Chinese import demand remains very strong.

If anything, it may be that the US largely can’t meet this prompt demand, leading to fewer actual US sales than normal and a de-linkage between Z3 and the physical market – or, in other words, rising basis levels for any cotton, anywhere that is shippable today (such as Chinese consignment stocks and Greek cotton). There is little price discovery beyond Feb 2014 as of today, when the current shortage should b be relieved.

The US Senate managed to reach an agreement at the 11th hour this week to reopen government and avoid hitting the debt ceiling. The House reluctantly came along, and we will start to see missed data releases from the past weeks issued soon, namely September payrolls on Tuesday. Tapering will be delayed and analysts are revising lower their USD estimates in coming quarters, some aggressively.

USD weakness should help global cotton prices, however the impact on ICE is yet to be seen. Chinese Q3 growth came in better than expected too at 7.8%, helping the AUD for one to hold onto recent gains. Unfortunately, the US deal was short-term and we’ll likely be forced through several more months of political and economic uncertainty as regards to the US fiscal situation.

Ecom USA


Must ReadView All

Pic: Shutterstock

Textiles | On 19th Oct 2021

11 European nations seek ambitious measures to tackle waste in textile

Eleven European countries—Austria, Belgium, Denmark, Finland, France, ...

Pic: Shutterstock

Textiles | On 19th Oct 2021

Industrial units in Vietnam’s HCM City hit by labour shortage

Several Vietnamese industries, especially labour-intensive ones like...

Pic: German Embassy Phnom Penh

Textiles | On 19th Oct 2021

Consortium comprising GIZ, others to address textile waste in Cambodia

An international consortium initiated by Deutsche Gesellschaft für...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Delay in adopting water sustainability both financially & environmentally...

Textile Industry, Head honchos

Textile Industry
Head honchos

Donating 20,000 N95 masks to hospitals & NGOs

Textile Industry, Head honchos

Textile Industry
Head honchos

Occam's razor principle and purpose-driven innovations

Ritu Oberoi,

Ritu Oberoi

Mumbai-based Forsarees is a socially driven business enterprise, working...

Benedetta Terraneo,

Benedetta Terraneo

Miko Srl, a subsidiary of US-based Sage Automotive Interiors and a member...

Susanna Koelblin,

Susanna Koelblin

Founded in 1920, Eastman is a global specialty materials company that...

Dr Anup Rakshit, ITTA

Dr Anup Rakshit
ITTA

The Indian Technical Textile Association (ITTA) is the only association of ...

Daniel Odermatt, Ventile

Daniel Odermatt
Ventile

Ventile is a registered trademark used to brand a special high-quality...

Jacques Prigneaux, EDANA

Jacques Prigneaux
EDANA

EDANA has been the leading global association and voice of the nonwovens...

Gaurang Shah, Label Gaurang Shah

Gaurang Shah
Label Gaurang Shah

Hyderabad based designer <b>Gaurang Shah</b>, has been traversing the...

Sarah Denise Cordery, Sarah Denise Studio

Sarah Denise Cordery
Sarah Denise Studio

Manchester, England-based Sarah Denise Studio provides relevant fashion...

Abhishek Bajaj & Samiksha Bajaj, Samshek

Abhishek Bajaj & Samiksha Bajaj
Samshek

Samshek is a fashion forward tech brand which combines digital experience...

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

Leave your Comments


October 2021

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


Advanced Search