Advertisement Advertisement Advertisement
 
 
Lost Password?
The performance of the textile and garment industry in 2016: Exports fell 1.9% while domestic garment consumption rose 2.2%.


	
Product
Find millions of selling leads from around the world,now!
Featured Company
TIFICO FIBER INDONESIA PT (PT. TIFICO)
PAN ASIA, PT
SUSILIA INDAH SYNTHETIC FIBERS INDUSTRIES, PT (SULINDAFIN)
Pollyfin Canggih, PT

Data & Statistic
  Indonesia Manufacturing Export Import Data
  Performance of Indonesian Textile Industry and Textile Products ( Kinerja Tekstil Indonesia ) 2017

Special Feature
  Texprocess presents ‘Digital Textile Micro Factory’ for the first time
Home arrow Latest News arrow USA: Cotton Prices To Fall In 2017-18 Even As Stocks Dip Says ICAC


				
			
			
USA: Cotton Prices To Fall In 2017-18 Even As Stocks Dip Says ICAC PDF Print E-mail
Written by Maizer   
Thursday, 06 April 2017

Cotton prices will retreat next season, despite a drop in world inventories, the International Cotton Advisory Committee said,entering the market debate on the impact of a forecast surge in US sowings.The ICAC, in its first forecast for average cotton prices in 2017-18.

 

Pegged them at 73 cents a pound,as measured by the Cotlook A index of physical values which, in including an element for transport, tends to trade at a premium to much-watched New York futures. Prices at that level would be 5 cents lower than the 78 cents a pound expected for 2016-17, on an August-to-July basis, and bring to an end the recovery from the multi-year low of 70 cents a pound recorded last season.

 

The forecast comes amid some uncertainty in cotton markets, as investors consider the impact of contrasting influences of strong demand for US exports of the fibre, but the prospect of a surge in the country's plantings this year.The US Department of Agriculture, in a much-watched report on Friday, pegged US cotton plantings this year at 12.2m acres – a rise of 21% year on year, and some 800,000 acres more than investors had expected, according to a Reuters poll.

 

The ICAC's comments come amid significant debate among cotton investors over the significance of the US sowings data, which Rabo bank termed a "strong bearish signal" for futures.With cotton prices particularly attractive against alternative row crops, the market anticipated the increase, but certainly not to the extent of the USDA," the bank said.,The sowings estimate suggested "potential" for US cotton stocks at the close of 2017-18 "to reach some 7m bales, the highest since 2007-08, through the incidence of a trend yield".

 

Commerz bank said that after the USDA plantings figure, "it is more likely that the 2017-18 crop year will see a marked rise in the US cotton crop",a factor which could provoke selling pressure as speculators unwind a near-record net long in futures and options in the fibre. Correction potential…is likely to have materialised by now," Commerz bank said, adding that this"points to another price fall in the short term".

 

At Commonwealth Bank of Australia, Tob in Gorey also flagged the potential for hedge funds to exit, assuming futures - which in the last session recorded their biggest fall in six months – continue to struggle.We suspect momentum investors, with a near-record investor long position, currently swing considerable weight in the cotton market," Mr Gorey said.

 

"Consequently our concern of late has been the market's slowing upward price momentum. As momentum fades, some investors will start to see the exit light flashing on their dashboards."Nonetheless, New York cotton futures for May stood at 75.59 cents a pound in early deals on Tuesday, a rise of 0.2% on the day, although down 1.2% from the level they were trading at in the run-up to the US sowings data.New crop December cotton futures traded at 73.81 cents a pound in early deals on Tuesday, a rise of 0.5% on the day – and up 0.2% since before the US sowings data were released.

 

 
		
More Latest News & Recent
Epson Develops Digital Textile Printing
The Government Maintain the Sustainability of Industrial Sector Investment
Peraga Expo 2019 is held from 28 to 30 March 2019
Stäubli Technologies for manufacturing advanced textiles
The Government Sees Potential Muslim Clothing Exports to Canada
Latest Selling Leads
Printmate 2017-10-27
Label 2017-04-07
Canvas Fabric 2016-04-29
Women Underwear 2016-03-21
POST   |   MORE
Latest Buying Leads
Twill Pants 2017-04-07
All Finish Fabric 2016-03-21
Cotton Waste 2014-02-03
Cotton Waste 2014-02-03
POST   |   MORE
  EXPERT PERSPECTIVE
Anne Patricia Sutanto
Vice CEO
PT. Pan Brothers Tbk.
Application for a Willingness to Be Resource Person

 

Read more...
Advertisement
Advertisement
 
 | Home | About Us | Contact Us | Organization Link | Our Publication | Advertisement | Sitemap | Web Impression | CSR | Term & Condition  | 
Copyright © 2008, All rights reserved by CV. Gaindo Pratama Indonesia.