Cotton
prices advanced in New York, adding to a 70 percent rally in the past
year, on concern the halt on shipments by the Asian nation may worsen
tight global supplies. World inventories will drop 19 percent in the
year through July as demand rises 5.7 percent, the U.S. Department of
Agriculture said on April 9″.”It tightens supply because the
amount of cotton on the market globally has now been reduced by the
decision,” said Tobin Gorey, a commodities strategist at JPMorgan Chase
& com. in London. “Buyers will be looking elsewhere, including the
U.S.” ..The price of long-staple cotton in India has advanced 27
percent to 7,958 rupees ($179) per 100 kilograms in the past year,
according to data on the Cotton Association of India’s Web site. Cotton
for July delivery added as much as 2.5 percent to 83.67 cents a pound
on ICE Futures U.S., the highest level for a most-active contract since
March 1 ..China, the biggest cotton user, may face a shortage
because of falling production and reduced global supplies, according to
CNCotton.com. Consumption may exceed supply by 3.5 million tons in the
year ending Aug. 31, and supply will remain tight next year, Mei Yong,
a director at the portal owned by China National Cotton Reserves Corp.,
said on April 16 ..”span style=”text-decoration: underline;”>”strong>Chinese Orders”/strong>”/span> ..”South
East Asian markets and our main buyer, China, will pass on their
enquiries to the other countries where exports are allowed freely,”
Kantilal V. Shah, chairman & managing director of exporter Gill
& com. Pvt. in Mumbai, said in e-mailed comments. “This could be at
the cost of Indian cotton.” The company is unsure whether it will be
able meet its sales commitments for April and May, he said ..Indian
exporters have sought approval to ship 8.5 million bales of 170
kilograms each in the period October to April 15, according to data on
the commissioner’s Web site. Traders have shipped about 6 million bales
in the same period ..”By effectively removing a sizable portion of
exportable supplies from the world balance sheet, this is likely to
boost world prices as importers and exporters alike scramble to shift
fiber sourcing.” FCStone Group, a U.S.-based commodity researcher, said
in a report ..The textile commissioner will revalidate export
contracts registered before yesterday, allowing shipments of unshipped
quantities on a monthly pro-rata basis, it said in the note ..Cotton
sales in the season started Oct. 1 may total 7.2 million bales, more
than the 6.8 million bales of 170 kilograms predicted in March, the
Cotton Association forecast on April 6 .” ”
Date:4/21/2010
Source:AL Youm AL saba Newspaper