cotton futures news

cotton futures news

August 2nd, 2016

The International Cotton Advisory Committee joined the round of deep cuts to estimates for world cotton stocks, citing improved expectations for Chinese demand, following well-received auction sales.

The intergovernmental group cut by 840,000 tonnes, to a four-year low of 18.63m tonnes, its forecast for world cotton inventories at the close of 2016-17, which began on Monday.

The revision is the latest in a series of downgrades by leading commentators on stocks expectations, with the US Department of Agriculture last month cutting its forecast for carryout inventories in the new season by 750,000 tonnes to 19.88m tonnes.

Cotlook has raised from 966,000 tonnes to 1.3m tonnes its forecast for the world cotton production deficit in 2016-17.

Continue reading »

cotton futures news

cotton futures news

December 15th, 2015

Cotton will be “one of the worst performing” agricultural commodities next year, Australia & New Zealand Bank said, warning that the latest drop in oil prices had only enhanced the competitiveness of synthetic fibres.

ANZ recommended a “sell” trade on New York cotton futures, saying that the relative stability of the market over the past two months, after recovering from a dip below 60 cents a pound in September, had lulled investors “into a false sense of security”.

In fact, an increase by hedge funds to a net long position of more than 60,000 contracts in New York cotton futures and options, as revealed by regulatory data on Friday, had only enhanced the prospect for selling pressure once it was unwound.

This net long – the extent to which long bets, which profit when values rise, exceed short holdings, which benefit when prices fall – was the highest in 19 months, and enhanced the idea of the fibre being “overbought”, the bank said.

Continue reading »

cotton futures news

cotton futures news

May 1st, 2015

West Africa’s cotton sector faces a “crisis” which could prompt “major shake-ups” within the region’s industry, Ecobank said, citing the knock-on effects of weak prices of the fibre.

Cash-strapped governments in the major West African cotton growing area, which includes Benin, Burkina Faso and Senegal, face a “daunting task” in setting minimum prices of the fibre for 2015-16, the bank said.

Passing on the 20% drop in prices forecast for cotton prices in 2015-16 to less than 70 cents a pound, as measured by the Cotlook A index, would prompt producers to switch to other crops, such as sesame or soybeans – an outcome “that governments want to prevent at all costs”.

“Cotton acts as a guarantee for rural food security… Cotton is simply too important for West African governments to allow a collapse in production.”

Continue reading »

cotton futures

cotton futures

August 7th, 2014

Cotton production in Australia is set to plummet as much as 50 percent next season as drought curbs water supply in the world’s third-biggest exporter, according to growers and shippers.

Output may be between 2 million and 2.5 million bales in 2014-2015 from about 4 million bales this year, according to Cotton Australia, the Sydney-based producers’ group. Production may total about 2.25 million bales, according to the Australian Cotton Shippers Association, which promotes exports. An Australian bale weighs 227 kilograms (500 pounds).

Cotton futures slumped 24 percent this year and are the biggest losers in the Bloomberg Commodity Spot Index as output in the U.S., the largest exporter, is poised to climb, adding to record global reserves. Australian farmers may plant less after a record drought in Queensland and dry conditions in parts of New South Wales, the biggest producer, according to Cotton Australia Chief Executive Officer Adam Kay.

Continue reading »

cotton futures

cotton futures

August 03, 2014

Cotton futures rose on Friday, as bargain hunting by cotton mills and short-covering by investors lifted the fibre market from a five-year low after three days of declining prices. The most-active December cotton contract on ICE Futures US finished up 0.4 cent at 63.27 cents a lb. The session low was 62.02 cent, the lowest since October 2009 for a benchmark second month contract in US cotton on a continual basis.

December cotton has lost 33 percent over the past two months as investors dumped futures on fears of excess supply. “We’re getting to a point where the mills are stepping up to buy fibre here,” said Jack Scoville, vice president at Price Futures Group in Chicago. ‘If you’ve been short for a while, you’re taking some money off the table here,” he said.

Continue reading »

cotton futures

cotton futures

July 24th, 2014

Cotton production in India, the world’s second-largest grower, is set to climb to an all-time high as delays in monsoon rains prompt farmers to switch from soybeans and peanuts, the nation’s biggest cotton trader said. Futures in New York fell.

The harvest is poised to expand as much as 2.6 percent to 40 million bales of 170 kilograms (375 pounds) each in the year starting Oct. 1, according to B.K. Mishra, chairman of the Cotton Corp. of India. While the area is increasing from 11.7 million hectares (28.9 million acres), the harvest will be delayed by the worst start to the monsoon since 2009, he said. Cotton Corp. buys the crop at government-set minimum prices.

Cotton futures have dropped for 11 straight weeks in New York, capping the longest slump in 55 years, on concern that global inventories are climbing as demand slows from China, the largest user. A higher crop in India, the top shipper after the U.S., may curb any rally in prices that fell 20 percent in 2014.

Continue reading »

March 21st, 2013

Cotton Futures – The longest cotton rally in four years and a lingering drought in the southern Great Plains are forcing farmers in the U.S., the world’s biggest exporter, to reconsider a shift to other crops.

Planting may total 11 million acres, 10 percent more than a Feb. 22 government forecast of 10 million, said Jordan Lea, the chairman of Eastern Trading Co., an exporter in Greenville, South Carolina. Prices are up 37 percent from a 31-month low in June and heading for a fifth monthly gain, the longest since July 2009. Corn fell 3.4 percent since the end of October.

The price surge was the “number one” reason “for me switching back to cotton,” said Randy McGee, 35, who farms 1,200 acres in Idalou, Texas. He’s ditching plans to sow corn and sorghum on 300 acres of non-irrigated land that he now plans to use for cotton. “December grain and corn prices aren’t looking too promising. I’m sending my seed back.”

Continue reading »

March 14th, 2013

Cotton futures rose to a 10-month high in New York on stronger U.S. exports stoked by Chinese demand and on speculation planting may decline as the fiber competes with corn and soybeans for acreage.

U.S. exports of upland cotton since the start of August reached 6.77 million bales as of March 7, up from 5.59 million bales a year earlier, the U.S. Department of Agriculture reported today. Weekly net sales of upland cotton were 187,561 bales, up from 150,083 bales in the week through Feb. 28, USDA data show.

Continue reading »

December 26th, 2012

Cotton futures rose to a nine-week high as exports surged from the U.S., the world’s biggest shipper. Sugar and coffee advanced, while cocoa and orange juice fell.

In the four weeks that ended Dec. 13, U.S. export sales of upland cotton soared sixfold from a year earlier, Department of Agriculture data showed on Dec. 20. Cotlook Ltd., the publisher of a benchmark price index, raised its forecast for global consumption, citing increases in countries including India.

Continue reading »

November 2nd, 2012

Cotton Futures – Cotton stockpiles in China, the world’s biggest importer, are set to climb to about 9 million metric tons this season, enough to cover the country’s deficit for the next six years, according to Allenberg Cotton Co.

Inventories are rising as the government boosts purchases to support domestic prices and lift farmer incomes, Joe Nicosia, chief executive officer of world’s largest cotton trader, said at a conference in Hong Kong today. The country may buy 5 million tons for reserves this year, up from 3.2 million tons a year earlier, he said.

Continue reading »