“Indian textile producers are currently pressing
for a ban on cotton export fearing they might not have enough raw
material for themselves. India, the second biggest cotton and cotton
products exporter in the world, currently panicked by especially heavy
monsoon rainfalls, might cause a world-wide crisis in the textile sector
if producers’ proposed ban is acknowledged by the government, experts
say”.Last week, the Indian government imposed a partial export ban
on the textile, however producers have suggested the partial ban is not
sufficient, according to daily Referans reported Wednesday. Sector
representatives who still complain that they cannot find enough raw
materials appealed to Prime Minister Manmohan Singh that the “export
should be banned entirely, until January 2011.” An appeal which
immediately caused a boost in cotton prices pushing the commodity to its
highest price in the last 15 years ..The Indian government
previously said they did not have any intentions in banning the export
of the commodity, which only fueled market suspicions when last week’s
announcement was broadcast ..New Delhi limited exports to just 1000
kilograms in order to prevent the domestic industry from being obliged
to purchase raw material but producers did not find the figure
sufficient. Consequently markets started to expect a bilateral expansion
of the limitation ..Currently investors are seeing a positive
trend with the expectation that importers would be obliged to redirect
purchases to the United States because of the price increase stemming
from the supply shortage ..”strong>‘Monsoon may linger for a longer time'”/strong> ..The
cotton harvest in India may be less than forecast if monsoon rains last
longer than normal, according to the Confederation of Indian Textile
Industry, Bloomberg broadcast Friday ..Production in the year from
Oct. 1 may be less than the 32.55 million bales estimated by the Cotton
Advisory Board last month, Bloomberg reported Confederation Vice
Chairman Prem Malik as saying. Output this year is estimated at 29.5
million bales, according to the board. An Indian bale weighs 170
kilograms ..The inaccurate forecast may further tighten global
supplies, stoking prices that have surged to their highest levels in 15
years on slumping inventories and damage to the crop in China, the
world’s largest producer. U.S. mills have been “panic” buying, according
to brokerage Varner Brothers in Cleveland, Mississippi ..”The
expectations that the Indian monsoon may linger for longer than normal
is something of extreme relevance to the international cotton market,”
said Luke Mathews, a commodity strategist at the Commonwealth Bank of
Australia. “Global supplies are extremely tight.” ..Cotton has been
the best performer over the past year on the UBS Bloomberg CMCI Index,
surging 47 percent. The most-active contract, for delivery in December,
advanced as much 1.5 percent to 97.18 cents a pound on ICE Futures U.S.
in New York today, the highest price since June 1995 ..”strong>Turkish cotton association well-prepared for commodity market fluctuations. ..On
the other hand, Çukurova Cotton, Peanut and Oily Seeds Agriculture and
Sales Cooperatives Association, or Çukobirlik, announced their cotton
purchase rates for 2010 and 2011, Anatolia news agency reported
Thursday ..According to the announcement, Çukobirlik offers 1.37
Turkish Liras per kilogram for cotton from the Çukurova region, 1.38
liras for cotton from Hatay and 1.41 liras for cotton from Diyarbakır ..Çukobirlik
chairman Abdurrahman Bal said the association has completely turned its
back on cultivators and their sole aim was maintaining cooperative
members’ contentment ..Bal also said that in the event of an
increase in cotton purchase rates in foreign and domestic commodities
markets, they would rearrange their prices accordingly, for the best
interest of their members .
Date:9/20/2010
Source:www.just-style.com