15TH NOV-COTTON MARKET BULLETIN

International & India Market Highlights

? In Qianqing, PC (65/35) 32s yarn prices edged down US cent 1 a kg in the first week of November while 45s PC combed yarn prices were flat on the week. 32s PV (65/35) rolled over on the week.

? MCX cotton futures witnessed a smart recovery last week, gaining by more than 5 per cent on account of renewed buying by millers.

North Zone: 

Cotton traded steady tone across major spot markets of north India on Tuesday. Prices were up Rs 25-35 per maund.  In Punjab, ready delivery new crop cotton traded at Rs 4,055-4,065 a maund. In Haryana, it offered at Rs 3,970-3,980 while in Rajasthan, ready delivery new cotton quoted at Rs 3,940-3,980 a maund.

Central Zone: 

Cotton spot prices steady tone across west India market on Tuesday. Gujarat Sankar-6 new crop cotton traded at  Rs 38500-39000 per cＡndy. while B-Grade Cotton traded flat at Rs 37500-38000 per cＡndy. V 797 cotton offered at Rs 26500-27500 a cＡndy. While in Maharashtra, new crop mech-1 good grade quoted 29 mm at Rs 38500-39000 a cＡndy.

South Zone: 

Cotton spot price was steady tone across the major trading centers of south India.  

US Cotton Futures : 

Cotton futures move higher: 

15-Nov-16  - Cotton futures edged higher on Monday after trading in a fairly tight range, as gains on talk of a downward revision in production by China were capped by a stronger dollar. "The two forces balanced each other out," said Gabriel Crivorot, analyst at Societe Generale in New York. China is reportedly reviewing cotton output expectations because of weather-related crop damage, he said. The dollar rose to an 11-month high against a basket of major currencies on Monday, in step with a jump in US bond yields as traders bet fiscal Ａnd trade policies under a Donald Trump administration would stoke inflation. The March cotton contract on ICE Futures US settled up 0.28 cent, or 0.41 percent, at 69.31 cents per lb. It traded within a range of 68.55 Ａnd 69.6 cents a lb. Total futures market volume fell by 57,746 to 35,812 lots. Data showed total open interest fell 5,021 to 245,704 contracts in the previous session. The dollar index was up was up 0.98 percent on Monday. The greenback rose to its highest in 11 months against a basket of major currencies on Friday. 

Copyright Reuters, 2016

Pakistan :

Cotton price remains firm: 

15-Nov-16  - KARACHI: The cotton market remained firm on Monday on steady flow of buying orders Ｆrom spinners Ａnd some exporters. Much of the activity, however, concentrated around quality cotton on fear of shortage in the coming weeks. The world cotton markets gave mixed trend with New York cotton staying steady but Indian Ａnd Chinese markets gave easy trend. The local market behaved on domestic dynamics with much of buying taking place in quality cotton, brokers said. The textile continues to exert pressure on government for bringing cost of doing business lower Ａnd has also taken serious note of gas outages Ａnd power shortage for the industry. Despite strong buying prices hovered around weekend level which had been there for over a week. Brokers said that industry had been trying to keep cotton prices lower so that viability in the world market was not disturbed. The Karachi Cotton Association (KCA) spot rates were steady at weekend level. Major deals on the ready counter were: 1,600 bales Ｆrom Khairpur (Rs5,976), 1,600 bales Saleh Pat (Rs6,100), 2,000 bales Dharki (Rs6,200 to Rs6,225), 2,000 bales Ghotki (Rs6,200 to Rs6,225), 5,000 bales Mianwali (Rs5,925 to 5,950), 2,400 bales Haroonabad (Rs6,150), 1,200 bales Faqirwali (Rs6,150), 1,000 bales Multan (Rs6,175), 1,000 bales Ghazi Ghat (Rs6,175), 1,600 bales Rajanpur (Rs6,200 to Rs6,225), 2,000 bales Liaquatpur (Rs6,200 to Rs6,250), 4,000 bales Rahimyar Khan (Rs6,200 to Rs6,250), 2,400 bales Bahawalpur (Rs6,200 to Rs6,250), 1,600 bales Fort Abbas (Rs6,185 to Rs6,200) Ａnd 1,000 bales Burewala (Rs6,200).

China :

Blended yarn price falls in China, stable in India: 

15-Nov-16 - In Qianqing, PC (65/35) 32s yarn prices edged down US cent 1 a kg in the first week of November while 45s PC combed yarn prices were flat on the week. 32s PV (65/35) rolled over on the week. Blended yarn prices fell on China's domestic market, with import prices more sharply Ｄropping, Ａnd therefore opening opportunities to foreign goods. Fibre prices were too Ｄropping, thus giving yarn makers some room to maintain margins. In Pakistan, cotton Ａnd VSF prices started declining, leading to fall in blended yarn prices but not significantly by contrast. Spinners were trying to maintain their margins by limiting the fall of their offers. Meanwhile, yarn production was recovering, as usual in this time of the year while could pressure yarn prices later. In India, blended yarn prices did not change that week although cotton prices inched up. Spinners kept offers unchanged for a while, Ａnd therefore saw better margins. 

Courtesy: Weekly PriceWatch Report

Cotton futures move higher:

15-Nov-16:Cotton futures edged higher on Monday after trading in a fairly tight range, as gains on talk of a downward revision in production by China were capped by a stronger dollar. "The two forces balanced each other out," said Gabriel Crivorot, analyst at Societe Generale in New York. China is reportedly reviewing cotton output expectations because of weather-related crop damage, he said.

Courtesy –RECORDER REPORT 

Textiles Ministry to consult states on new Textile Policy

2016-11-11 :The Union Textiles Ministry will hold a special meeting with various states to seek their views Ａnd suggestions for the new Textile Policy, since it is important to consult states for successful implementation. The new policy aims to garners $300 billion in textile Ａnd apparel exports by 2024-25, while also creating an additional 35 million jobs.

“The relevant suggestions Ｆrom the states will be vetted by the Textiles Ministry Ａnd take into the final draft of the policy, after which a cabinet note will be circulated among other ministries like the Finance Ministry for more inputs,” a media agency quoted an official of the textiles ministry as saying.

“Seeking suggestions Ａnd inputs Ｆrom states was important in formulating the policy, the official added.

Once the draft of the policy gets the nod Ｆrom various ministries, it will be sent to get approval Ｆrom the Union Cabinet. (AR)

Courtesy –Fibre2Fashion News Desk – India

Vietnam apparel sector to face challenges in 2017:

With global demＡnd forecast to slow down, the Vietnamese Textile Ａnd garment industry will continue to face challenges in the next year, mainly due to fierce competition Ｆrom other exporting countries like India, China, Pakistan Ａnd Bangladesh. The election of Donald Trump, who has indicated that he will not support treaties, may also impact exports.

This was informed by Le Tien Truong, general director of the National Garment Ａnd Textile Group (VINATEX), who also added that garment exports to the EU will also be under negative impact, as a result of Brexit.

“So, the industry is expecting export growth rate of just between 5-7 per cent, if no appropriate policies are announced,” a Vietnamese news agency quoted Truong as saying.

The Vietnam Textile Ａnd Apparel Association (VITAS) has approached the Ministry of Industry Ａnd Trade with several proposals to boost the industry, which include; reviewing policies on minimum wage raises Ａnd working hours; Ａnd boosting domestic as well as foreign investments in the industry. (AR)

Courtesy –Fibre2Fashion News Desk – India