Home / Knowledge / News / Textiles / NY futures continued to advance this week

NY futures continued to advance this week

02
Mar '07
In a week that saw wild swings in the world's financial markets, cotton futures traded in a relatively narrow range between 1000 and 1140 points above the current AWP of 42.70 cents. Steady spec and fund buying lent support to the market, but strong trade selling near 54.00 cents capped any attempt to advance further.

The fact that the trade had several opportunities to lock in an 1100+ spread to the AWP could lead to an increased number of redemptions by tonight, since next week's AWP will jump by 80 points to 43.50 cents. As of Tuesday, a total of 5.89 mio running bales had been redeemed from the loan, up from 5.46 mio bales the week before, but still over 7.0 mio bales shy compared to the same date a year ago.

The market will have a very tough time advancing much beyond this 1100 point spread to the AWP, for a simple reason. With grower equities now available for as low as 100 points in the Mid-South, it does not take a whole lot more than 1100 points to make deliveries against the May contract work. The wider the spread, the more it attracts loan cotton to the board, and there are currently still 13.2 mio bales waiting to be redeemed. Therefore, the market needs to stay just shy of a spread that works for deliveries, but at the same time it needs to offer enough of an incentive to keep cotton coming into the marketplace.

The fact that grower equity values have dropped considerably over the last couple of months has allowed US cotton to become more competitive in the global marketplace. The one flaw in the US price mechanism is that there is no provision to account for grower equity values when comparing US prices to world prices. There is only a shipping differential of currently 11.49 cents and a quality adjustment of 4.65 cents (Middling to SLM) to reduce the A-Index to the Adjusted World Price (AWP).


Must ReadView All

Pic: Shutterstock

Textiles | On 16th Sep 2021

Australia, Bangladesh sign Trade and Investment Framework Arrangement

In a recent virtual ceremony, Bangladesh and Australia signed the...

Pic: Ministry of Foreign Affairs, the People's Republic of China

Textiles | On 16th Sep 2021

China urges US to initiate steps to repair damaged bilateral ties

China recently urged the United States to initiate steps to repair...

Pic: Shutterstock

Apparel/Garments | On 16th Sep 2021

Bangladesh seeks 12-year duty-free access to EU after LDC graduation

Bangladesh commerce minister Tipu Munshi is hopeful that the European ...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Strongly believe in 'people first' policy.

India-EU Summit, Representatives

India-EU Summit
Representatives

India-EU FTA will provide EU with better access to a huge & rapidly...

Textile Industry, Head honchos

Textile Industry
Head honchos

Always best to produce under own supervision

Mumin Can Eker,

Mumin Can Eker

Maseksport Inc is a readymade garment exporter. Founded in Izmir in 1989,...

Rajesh Vohra,

Rajesh Vohra

A part of the Italy based multinational company Artsana Group, Chicco is...

Susan Bhaktul,

Susan Bhaktul

Established in 2000 as a liaison with the Government of India, Industree...

Sameer Sonkusale & Rachel Owyeung, Tufts University

Sameer Sonkusale & Rachel Owyeung
Tufts University

A team at the Tufts University in Massachusetts was recently in news for...

Tiasha Renganathan, Twinery Innovations by MAS

Tiasha Renganathan
Twinery Innovations by MAS

Twinery-Innovations by MAS is the innovation arm of Sri Lankan company MAS ...

Frank Heislitz, Freudenberg

Frank Heislitz
Freudenberg

Freudenberg Performance Materials is a leading global manufacturer of...

Abhishek Bajaj & Samiksha Bajaj, Samshek

Abhishek Bajaj & Samiksha Bajaj
Samshek

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

Seema Gujral, Label Seema Gujral

Seema Gujral
Label Seema Gujral

<b>Seema Gujral</b>'s designs for her eponymous label revolve around...

Vidur Adlakha & Riccardo Bennidini, La Fuori

Vidur Adlakha & Riccardo Bennidini
La Fuori

With an active presence in US, Italy and India, clothing brand La Fuori...

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


September 2021

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


Advanced Search