“The excessive rain slowed cotton maturation, and delayed the start of harvest in several areas. ..The
extended wet spell is likely to have wide ramifications for the
flowering season and farmers are apprehensive about the fate of their
crops as the natural cycle has gone haywire. ..Another reason for
the prices to remain clutched on top is projected decline in top
producer China’s 2010/11 cotton production, which was sliced by 1.0
million (480-lb) bales to 31.5 million, its imports raised to 13 million
bales from an earlier estimate of 12.75 million, and its ending stocks
dropped to 14.72 million from 16.01 million. ..Analysts said,
Indian export restrictions, which have been behind the jump in prices to
records in both the US, the top cotton exporter, and China, the main
producer, consumer and importer of the fibre, is likely to extend over
these conditions. ..India is expected to harvest a bumper crop of 32 million bales this season ..In
India, cotton yarn prices, which were ruling at Rs 185 a kg in August
this year have now touched an all time high of over Rs 240 a kg, an
increase of Rs 55 per kg in a short span of two months. ..The
Indian apparel industry observed a nationwide agitation in protest
against the continuously rising prices of cotton yarn last week. ..In
Tirupur, Tamil Nadu, India’s one hub for apparel making and exports,
about 1,00,000 people observed a hunger strike. These comprised of
factory owners, workers, trade unions, etc. ..Meanwhile, Indian textiles Minister Dayanidhi Maran said cotton yarn prices would stabilize by December 15. ..He
specifically told the spinning sector to not take advantage of rising
cotton yarn prices as they had been steadily increasingly and in the
process, create undue problems, as the government is very much concerned
about the weavers. ..New York cotton futures rose the maximum
allowed by exchange limits last week, to hit a fresh record of 151.23
cents a pound, reaching an all-time high too on China’s Zhengzhou
exchange. ..New York contracts were pinned against the exchange
ceiling by a cut to the estimate for US stocks to 2.2m bales, their
lowest since 1925, reflecting both lower production hopes in Texas and
higher export expectations. ..Volume traded in US cotton reached almost 45,400 lots, about a quarter above the 30-day average of 34,200 lots. ..The
cotton futures sustained rise for some weeks will lose heat or
otherwise major players had no meeting ground and differed. As it is
apparently China’s emerging role in keeping cotton unwavering seemed to
many. ”
Date:11/24/2010
Source: