• Cotton imports from Asian countries like Bangladesh, Vietnam and Indonesia is expected to go up in 2015/16, while those from China are expected to go down.
• Polyester prices resisted decline despite drop in raw material prices.
US Cotton Futures :
ICE cotton falls amid dry Texas forecasts, weak demand: November 04, 2015 – ICE cotton futures fell for the second straight session on Tuesday, as forecasts for dry weather in leading US growing regions allowed for harvesting to continue after recent rains, and bearish demand sentiment weighed on prices. “Texas is back in the fields, Georgia’s back in the fields,” said Jim Lambert, director of sales at FCStone Merchant Services in Nashville, Tennessee, noting that one of the major takeaways of a large industry conference last week was weak demand from overseas buyers and the absence of many buyers from top consumer China. December cotton on ICE Futures US settled down by 0.72 cent on Tuesday, a 1.1 percent loss, at 62.57 cents per pound. It traded within a range of 62.52 and 63.85 cents a pound. In its second day of trading, ICE’s world cotton contract saw 109 lots for May 2016 delivery change hands, up from 21 the prior session. It settled down 0.2 percent at 71.10 cents a lb. Total futures market volume rose by 4,107 to 32,264 lots. Data showed total open interest fell 30 to 199,706 contracts in the previous session. Certificated cotton stocks deliverable as of November 2 totalled 43,216 480-lb bales, down from 46,140 in the previous session. The dollar index was up 0.25 percent. The Thomson Reuters CoreCommodity CRB Index, which tracks 19 commodities, was up 1.36 percent. The Relative Strength Index in the most-active contract fell to 49.397. Copyright Reuters, 2015
Cotton prices remain under pressure: November 5th, 2015 – KARACHI: Selling pressure pushed cotton prices lower on Wednesday as ginners having ‘long’ position rushed to unload their stocks fearing further decline in lint prices. Floor brokers said slack cotton demand from spinners in front of lower export orders for yarn and high prices of cotton compared to import parity kept prices under pressure. The situation is highly perplexed because short crop and poor demand from China owning to high cost of Pakistani yarn against Indian and Vietnamese variety kept trading activity slow and restricted. Most deals were finalised at lower prices, though there was some rebound towards the closing stages. However, large groups of spinners continue to book cotton for import as they feel that domestic market prices are still higher than the import parity. The Karachi Cotton Association (KCA) for second straight session also adjusted spot rates downward by Rs50 to Rs5,350 per maund. Major deals on ready counter were: 3000 bales from Khairpur done at Rs5450 to Rs5500, 1000 bales upper Sindh at Rs5550, 600 bales Chistian at Rs5400 to Rs5525, 600 bales Rahimyar Khan at R5650, 600 bales Sadiqabad at Rs5650, 600 bales Fort Abbas at Rs5500 to Rs5525, 600 bales Haroonabad at Rs5500 and 400 bales Alipur at Rs5500. The New York cotton market once again came under selling pressure where prices reeled back for all the future contracts except for far-off October 2016.
Cotton imports from Asia outside China to rise in 2015/16: November 05, 2015 (Global) Cotton imports from Asian countries like Bangladesh, Vietnam and Indonesia is expected to go up in 2015/16, while those from China are expected to go down. “In 2015/16, Asian imports excluding China are expected to reach 4.5 million tons, representing 60% of world imports,” a report from the International Cotton Advisory Committee (ICAC) stated. According to ICAC, Bangladesh, Vietnam and Indonesia are the three largest importers in the region outside of China. Imports by Bangladesh may slightly exceed one million tons in 2015/16, up 4 per cent from last season, while imports by Vietnam are projected to grow 5 per cent to 990,000 tons. “After declining in 2013/14, imports by Indonesia increased 13 per cent to 735,000 tons in 2014/15 and may reach 780,000 tons in 2015/16,” it said. However, Chinese imports are projected to fall by 24 per cent from 2014/15 to less than 1.4 million tons in 2015/16. Although, China will likely remain the world’s largest importer in 2015/16, its share of world imports has fallen from 55 per cent in 2011/12 to 22 per cent in 2014/15 and may only reach 17 per cent in 2015/16. Last month, China announced that its 2016 cotton import quota would be limited to 894,000 tons, the same as in 2015, in order to encourage consumption of domestically produced cotton. Cotton production in China is estimated at 5.4 million tons in 2015/16 and the Chinese government still holds around 11 million tons in its reserves. The total supply of cotton in China for 2015/16, excluding imports, is estimated at 18 million tons, which would be more than double its annual volume of consumption, forecast at 7.7 million tons. However, demand for high quality cotton will be partially met by imports, particularly given concerns over the quality of this year’s domestic crop. After reaching 12.7 million tons in 2014/15, ending stocks in China may decrease by 8 per cent in 2015/16 to 11.7 million tons while stocks outside of China are forecast to fall by 2 per cent to 9 million tons. Mill use in Asia outside of China is forecast to rise by 4 per cent to 12 million tons, representing 48 per cent of world consumption projected at 25 million tons in 2015/16. Mill use in India is expected to reach 5.6 million tons, up 3 per cent from 2014/15 and in Pakistan 2.6 million tons, a hike of 2 per cent from 2014/15. However, world production is forecast to drop 9 per cent to 23.9 million tons, about 1.1 million tons below consumption. Although production in the United States is projected to dip 11 per cent to 3.2 million tons and exports to decline 9 per cent to 2.2 million tons, it will likely remain the world’s largest exporter. India, the world’s second largest exporter, could see a small recovery in 2015/16, with exports forecast to increase 15 per cent to 1.1 million tons. (AR) Source: Fibre2Fashion News Desk — India