Last night in New York futures market, July 09 closed at 55.67 with a gain of 56 points the volume traded was 11779 contracts, the October 09 closed at 58.32 with a gain of 71 points and the volume traded was 301 contracts, while the December 09 closed at 60.24 with a gain of 67 points and the volume traded under December 09 cover was 7519. The cotlook A index declared settled at 61.55 with a decrease of 125 points today.
The spot rate of KCA remained firm and strong, the settlement declared at Rs. 3550/=, with no changes today. In the domestic market today 400 bales of Layyah sold at Rs. 3450/=, 200 bales of Jalal Pur sold at Rs. 3550/=, 200 bales of Lodhran sold at Rs. 3550/=, and 200 bales of Ali Pur sold at Rs. 3550/=.
“The China National Cotton Exchange (CNCE) announced has from this week started to offer 2003/2004 and 2004/2005 crop (including imported cotton) from the state reserves, alongside continuing allocations of current crop. At today’s auction, a total of 25,212 tonnes were made available, of which 18,012 tonnes were taken up. The averaged grade was 4.04, marking a decline on the average witnessed to date, attributable to the inclusion of old crop cotton. The weighted average price converted to Type 328 was 12,800 Yuan per tonne, slightly higher than on Friday. From May 22 to date, a total of 104,391 tonnes have been transacted.”
The USDA will release the monthly supply/demand report tomorrow at 8:30 a.m. Eastern time. With U.S. export commitments excluding the USDA target of 12.5 million bales by a million bales and shipments on pace to exceed the USDA estimate suggest that U.S. export projection may be increased 300-500 bales on Wednesday’s report for the 08/09 supply/demand sheet. An increase in U.S. exports would immediately translate to a reduction in U.S. ending stocks as of August 1, 2009 and 2010. There is a chance the USDA may increase World Consumption for 09/10 on the World Statistics due to the improvement in the textile sector of late in China.
U.S. cotton under loan totaled 499,734 bales down 1,725 bales for the week ending June 2. There were 199,265 bales under Form A and 484,081 bales under Form G.
According to local business daily “consumer credit dives again. Borrowing fell by $15.7 billion in April, far worse than views and the 6th drop in 7 months, as consumers pare debt, possibly limiting an economic recovery. March’s consumer credit decline was revised up to record $16.6 billion. In April, credit card and other revolving debt fell by $8.6 billion. Auto and other non-revolving credit sank $7.1 billion.”
A second article in the daily said that, “U.S. growth to turn positive soon. A gauge of future U.S. economic activity rose to a 32-week high of 113.5 for the week ended May 29 from 111.9 the prior week, the Economic Cycle Research Institute said. Its annualized growth rate jumped to a 46-week high of -7.1% from -9.3% the week before. The data reaffirm ECRI’s view that U.S. prospects are ‘rapidly reviving’ and annual growth will return this summer.”
Egyptian apparel exports to the US market are ignoring the recession, with a surge of 15% in US$ terms over the first quarter. This is mostly due to the duty-free programme benefiting local zones and recently expanded to upper Egypt. Thanks to these QIZs, the low-cost country became a leading supplier of denim pants to the US market.
Raw material costs of polyester producers fell in the past weeks in India, with staple fiber prices also declining as a result. Filament prices were mixed with POY prices being reduced while textured yarn prices were raised, thanks to stronger demand from weavers, our India Correspondent reports.
Polyester prices more sharply fell in the last seven days, reflecting a series of depressing factors in the Far East, including lower demand and raw material costs. Polyester consumption may however be stimulated by a larger price difference between cotton and PSF.
Prices were more evidently falling in the polyester chain on Monday, reflecting a new decline in demand for polyester fibers in China. New paraxylene and PTA capacities are also depressing the market while glycol is now sliding, on its turn. The polyester chain continues ignoring the sharp rise in crude oil prices.
Cotton prices last week fell in New York, mainly due to a rebound in the US$ which depressed commodity markets. Physical demand was also weaker on the international market with the cotton yarn trade slowing down in Asia. In addition, cotton prices could sharply decline in the next season, according to the ICAC.