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Home / Knowledge / News / Textiles / Prices perk up on cues from cotton procurement progress

Prices perk up on cues from cotton procurement progress

10
Dec '08

Last week, cotton procurement under the National Cotton Reserve Plan touched 246,500 tons, nearly double with an increase of 127,800 tons over the previous week. Among them, Xinjiang cotton totaled 207,800 tons while inland cotton accounted for 38,700 tons.

According to statistics, as of last weekend, out of the total procurement plan of 1 million tons, the exercise has realized 685,050 tons, or two thirds of the target.

With the procurement process continuing and increasing quantities being purchased, spot cotton market prices in the last week extended its upward trend from its previous week closing, with the effects of the procurement becoming increasingly evident.

Some small mills who were till date adopting a wait-and-watch attitude also started purchasing, albeit in smaller quantities while the bigger enterprises actively participated in cotton procurement, due to which smaller and individual regions and markets witnessed tight supply.

The trend of falling prices in yarns maintained their continuity and prices of cotton yarns in textile markets continued to fall. The weekly closing price of 21s count cotton yarn fell by 100 Yuan per ton from its initial weekly opening price while polyester-cotton yarn prices also declined by 200-300 Yuan per ton.

The market is overly worried about the prospects of the textile industry this year. From amongst the cotton enterprises surveyed, the general concern dwells on the cotton consumption in the current year and they also hold a very pessimistic outlook for the next year too.

Fibre2fashion News Desk - India

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