Daily worldwide cotton market report

15 May '09

3 min read

Last night in New York futures market, July 09 closed at 59.06 with a gain of 2 points the volume of business traded under May cover was of 8323 contracts, the October 09 closed at 60.45 with a loss of 8 points the volume remained 378 contracts, while the December 09 closed at 61.07 with a gain of 4 points and the volume traded was of 2598 contracts. The Cotlook A index declared settled at 62.20 with a decrease of 130 points.

The spot rate of KCA remained firm and strong the settlement declared at Rs. 3700/=, with no changes today. In the domestic market today 2000 bales of Shahdad Pur sold at Rs. 3425/=, 150 bales of Khipro Sold at Rs. 3450/=, 300 bales of Nau Abad sold at Rs. 3625/=, 900 bales of Nawab Shah sold at Rs. 3450/=, 1000 bales of Khan Pur Mahar sold at Rs. 3625/=, 400 bales of Daharki sold at Rs. 3700/=, 600 bales of Ghotki sold at Rs. 3800/=, 800 bales of Duniya Pur sold at Rs. 3725/=, 600 bales of Kochack sold at Rs. 3750/=, and 3000 bales of Kahror Pakka changed hands at Rs. 3550/=.

According to recently published figures of USDA on US export sales of cotton Net Upland sales of 53,600 running bales were down 53 percent from the previous week and 76 percent from the prior 4-week average. Increases were reported for Turkey (49,300 RB), Thailand (7,800 RB), Mexico (4,700 RB), Hong Kong (3,500 RB), Pakistan (2,500 RB), Peru (800 RB), and Taiwan (700 RB).

Decreases were reported for Indonesia (12,900 RB), Malaysia (3,400 RB), and Vietnam (1,500 RB). Net sales of 23,300 RB for delivery in 2009/10 were for Indonesia (12,200 RB), South Korea (7,100 RB), Turkey (2,500 RB), and Mexico (1,500 RB).

Optional origin sales of 16,100 MT were for Turkey. Exports of 228,100 RB were up 46 percent from the previous week and 23 percent from the prior 4-week average. The primary destinations were China (63,700 RB), Turkey (43,500 RB), Pakistan (19,000 RB), Mexico (16,300 RB), Taiwan (15,800 RB), and Hong Kong (12,400 RB).

Net American Pima sales of 2,100 RB were for Pakistan (1,200 RB), Italy (500 RB), Bangladesh (400 RB), and India (400 RB). Decreases of 400 RB were reported for Germany. Exports of 5,700 RB were mainly to China (2,200 RB), Pakistan (900 RB), Turkey (900 RB), and Germany (700 RB).

The Business daily reported that China's exports fell 22.6% in April compared a year ago. This plunge was steeper than the 17.1% decline in March and more than the 18% drop that was expected. However, copper imports made a new high, signaling recovery, according to the article.

Also, investment spending in urban areas climbed 30.5% in the first 4 months from a year ago as the government poured money into building railways, oil pipelines and low cost housing. According to the article, "China's $586 billion stimulus package and heavy early-'09 lending by stat-run banks have helped restart the world's No. 3 economy."

Ghulam Rabbani & Co.

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