• The Southern India Mills’ Association has hailed the Central Government’s decision for considering its pleas and enhancing the drawback rates and value caps for various value added products.
• Cotton prices remained firm after Diwali Holidays.
US Cotton Futures :
Cotton Rises as Rain Delays U.S. Harvest: November 17, 2015 – Cotton prices rose Tuesday on ideas that rain could further damage crops in U.S. growing regions. Cotton for March delivery rose 0.9% to 63.20 cents a pound, on track for its largest rise since Oct. 30. In the U.S., the cotton harvest is running behind schedule, according to the U.S. Department of Agriculture. As of Nov. 15, the U.S. crop was 64% harvested versus 74% on average. Georgia, South Carolina, North Carolina and Virginia are the most behind as heavy rains disrupted harvests there. More rain is on the way later this week, WeatherBELL Analytics said in a note. “It is likely that more crops in these areas will be damaged,” Jack Scoville, vice president of Price Futures Group said in a note. “Production in the Carolinas already took a hit from the big rains seen over the summer.” Traders are weighing lower production against a world teeming with cotton stockpiles. The contract has had a difficult time breaking out of a tight trading range this year as cotton continues to lose market share to cheaper synthetic fibers and China, the world’s largest cotton consumer, attempts to unwind from its large cotton stores. In other markets, raw sugar for March dropped 3% to 14.72 cents a pound, frozen concentrated orange juice futures for January fell 2.4% to $1.499 a pound, cocoa for March rose 0.1% to $3,379 a ton and arabica coffee futures for March were up 0.7% at $1.19 a pound. Source:http://www.nasdaq.com
Cotton market: Panic buying seen by mills ahead of PCGA report: November 18, 2015 – Mills indulged in panic buying on the cotton market on Tuesday ahead of the Pakistan Cotton Ginners Association (PCGA) report shortly, dealers said. The official spot rate was unchanged at Rs 5,300, dealers said. In Sindh, seed cotton prices were at Rs 2400 and Rs 3000 and in the Punjab rates were at Rs 2500 and Rs 3100, they said. In the ready business, over 20,000 of deals were finalised between Rs 4800 and Rs 5600, they said. Some of experts were of the view that reports of crop size and stable dollar propelling mills to make fresh deals, besides fine variety is also a factor behind the rise in fresh demand. Cotton analyst, Naseem Usman said that as a whole, market is firm but higher cost of doing business is not encouraging traders or mills to run their business with a peace of mind. Locally, traders were importing cotton because of short crop, furthermore, weaker Indian rupee is also helping them to make fresh deals, he added. Reuters adds: ICE cotton futures touched their highest level since early November on Monday on a chart-fuelled jump, before paring gains on producer selling. A breach of resistance at a long-term downtrend line around 62.60 cents per lb and the 20-and-50-day moving averages was technically positive, said a US trader. The March cotton contract on ICE Futures US settled up 0.62 cent, or one percent, at 62.61 cents per lb. It traded as high as 63.55 cents a lb. The cash to second-month spread fell 0.52 cent to 0.9 cents per lb. Total futures market volume rose by 15,164 to 56,559 lots. Data showed total open interest fell 7,644 to 184,225 contracts in the previous session. The following deals reported, 1000 bales from Tando Adam at Rs 4800-4900, 400 bales from Nawabshah at Rs 5300, 3000 bales from Khairpur at Rs 5350-5400, 400 bales from Rohri at Rs 5500, 400 bales from Ghotki at Rs 5650, 400 bales from Dharki at Rs 5650, 800 bales from Mirpur Mathailo at Rs 5650, 400 bales from Khanpur Mehar at Rs 5650, 400 bales from Bakhar at Rs 5400, 400 bales from Rajanpur at Rs 5400, 400 bales from Layyah at Rs 5450, 800 bales from Faqirwali at Rs 5450, 600 bales from Dera Ghazi Khan at Rs 5450-5500, 600 bales from Alipur at Rs 5450, 400 bales from Burewala at Rs 5460, 400 bales from Bahawalpur at Rs 5500, 1600 bales from Fort Abbas at Rs 5500-5525, 1000 bales from Yazman Mandi at Rs 5500-5525, 1400 bales from Rahim Yar Khan at Rs 5550-5600, 5000 bales from Mianwali at Rs 5575-5625 and 1000 bales from Sadiqabad at Rs 5600, dealers said.
Blended yarn price remains stable in China while falls in India: 16-11-2015 : In Qianqing, PC (65/35) 32s yarn prices were up US cent 1 a kg in the first week of November while 45s PC combed yarn prices were stable. Prices of blended yarn declined in line with fibre prices in recent weeks. In China, polyester-cotton generally rolled over but there is a possibility of a decline in coming weeks. In India, polyester-cotton prices declined 1.5% in Ludhiana whereas polyester-viscose was lost a tad in Indore. 30s (65/35) PV yarn prices were down US cents 2 a kg in the wee in Indore market. In Ludhiana, PC 30s (52/48) prices fell US cents 4 on the week. Blended yarn buyers in Pakistan expect prices to remain firm in the coming weeks, due to anti-dumping duties on PSF imports from China. Large sales were reported, especially for polyester-cotton of 31s and 24s yarns. However, buyers rejected any price hike while offers may remain stable or slightly down in the coming weeks. Courtesy: Weekly PriceWatch Report