Global prices of the cotton commodity shot up after India, the second largest exporter of cotton, imposed ban on the commodity.
According to the officials, India imposed ban to ensure sufficient amount for the domestic industries as the exports surged to about 9.5 million bales (170 kilograms each) more than the surplus of 8.4 million bales estimated by the government.
While the government has issued registration certificates for another 2 million bales.
According to United States Department of Agriculture (USDA), India accounts for 17% of global exports in 2011-2012. China is the largest consumer of Indian cotton.
India is expected to produce around 34 million bales of cotton for 2011-12. and is expected to export around 70 million bales.
In Inter-Continental Exchange (ICE), cotton for march delivery gained 0.22 cents to 89.78cents per lb.
While, in India's National Commodity and Derivative Exchange (NCDEX), cotton for March delivery traded up 0.06% to Rs 810 per kg on 9th March at 16:20 IST.
According to the officials, India imposed ban to ensure sufficient amount for the domestic industries as the exports surged to about 9.5 million bales (170 kilograms each) more than the surplus of 8.4 million bales estimated by the government.
While the government has issued registration certificates for another 2 million bales.
According to United States Department of Agriculture (USDA), India accounts for 17% of global exports in 2011-2012. China is the largest consumer of Indian cotton.
India is expected to produce around 34 million bales of cotton for 2011-12. and is expected to export around 70 million bales.
In Inter-Continental Exchange (ICE), cotton for march delivery gained 0.22 cents to 89.78cents per lb.
While, in India's National Commodity and Derivative Exchange (NCDEX), cotton for March delivery traded up 0.06% to Rs 810 per kg on 9th March at 16:20 IST.
CAB, in its meeting next week, may revise cotton output estimates downwards for the current year. In the last meeting, it had estimated the cotton crop at 35.6 million bales (one bale of 170 kg). It may now cut this by a million bales, said a source.
CAB is headed by the Union textile commissioner and comprises trade and industry representatives.
A couple of weeks before, the International Cotton Advisory Committee had cut global production estimates by nearly seven per cent to 24.9 million tonnes (mt) for the 12 months ending July from 26.8 mt a year earlier. Following this, the US agriculture department had also cut world cotton output estimates and said India would also produce less this season. It had said India’s output will be lower to 34.25 million bales from the earlier estimate of 35 million bales.
Low arrivals at this time are seen as a concern and indicate the late crop may have been affected in some parts and overall output may be lower. So far, only 60 per cent of the total cotton has come into the market. Traders say arrivals on a daily basis are around 200,000 bales, which should have been higher in early January.
The benchmark variety, Shankar-6 prices have risen from Rs 34,000 a candy (1 candy = 356 kg) to Rs 37,800 a candy, up 11 per cent in the last two weeks.
Cotton Corporation of India started buying the crop last week, but not in a big way, said an official.
“Currently, high export demand from China is supporting prices,” said Rahul Kotecha, a Coimbatore-based trader. Export demand has picked up from major textile hubs like China, Bangladesh, Taiwan and Indonesia. China’s December cotton imports rose 71 per cent year-on-year to 790,000 tonnes and the country will soon issue another import quota of 1.1 mt.
Demand from cotton yarn manufacturers also increased in the last couple of weeks.
Sources said so far 4.6 million bales had been exported and by March-end 5.5-6 million bales were expected to be exported. “I feel more than five million bales of cotton has been registered for exports so far,” said a source with a government body.
CAB is headed by the Union textile commissioner and comprises trade and industry representatives.
A couple of weeks before, the International Cotton Advisory Committee had cut global production estimates by nearly seven per cent to 24.9 million tonnes (mt) for the 12 months ending July from 26.8 mt a year earlier. Following this, the US agriculture department had also cut world cotton output estimates and said India would also produce less this season. It had said India’s output will be lower to 34.25 million bales from the earlier estimate of 35 million bales.
Low arrivals at this time are seen as a concern and indicate the late crop may have been affected in some parts and overall output may be lower. So far, only 60 per cent of the total cotton has come into the market. Traders say arrivals on a daily basis are around 200,000 bales, which should have been higher in early January.
The benchmark variety, Shankar-6 prices have risen from Rs 34,000 a candy (1 candy = 356 kg) to Rs 37,800 a candy, up 11 per cent in the last two weeks.
Cotton Corporation of India started buying the crop last week, but not in a big way, said an official.
“Currently, high export demand from China is supporting prices,” said Rahul Kotecha, a Coimbatore-based trader. Export demand has picked up from major textile hubs like China, Bangladesh, Taiwan and Indonesia. China’s December cotton imports rose 71 per cent year-on-year to 790,000 tonnes and the country will soon issue another import quota of 1.1 mt.
Demand from cotton yarn manufacturers also increased in the last couple of weeks.
Sources said so far 4.6 million bales had been exported and by March-end 5.5-6 million bales were expected to be exported. “I feel more than five million bales of cotton has been registered for exports so far,” said a source with a government body.
Cotton trade - Cotton prices were steady in north India Saturday amid higher arrivals and good demand at lower level. Ready delivery RG cotton traded at Rs 3,390-3,435 per maund in Punjab, Rs 3,330-3,345 per maund in Haryana and Rs 3,330-3,340 per maund in Rajasthan.
Cotton yarn prices were steady amid normal domestic demand. Exports offer of 30 count combed cotton yarn were placed at 3.40 dollar per kg CNF. Domestic offer price of 30 count combed cotton yarn placed at Rs 180 per kg while for 30 count single PC yarn at 174-175 per kg.
Arrival of new cotton in north India stood at 34,000 bales. Traders said that spinners have boosted purchases after improvement in yarn off take, earlier they were buying for one day consumption now they are covering for two days.
Cotton yarn prices were steady amid normal domestic demand. Exports offer of 30 count combed cotton yarn were placed at 3.40 dollar per kg CNF. Domestic offer price of 30 count combed cotton yarn placed at Rs 180 per kg while for 30 count single PC yarn at 174-175 per kg.
Arrival of new cotton in north India stood at 34,000 bales. Traders said that spinners have boosted purchases after improvement in yarn off take, earlier they were buying for one day consumption now they are covering for two days.
Future cotton commodity prices quote, free intra-day Cotton futures prices and cotton quotes in 2011, 2012, 2013 and 2014. These include open prices, high prices, low prices and last prices of cotton future.
High
Low
Last
Time
Set
Chg
Vol
97.64 *
21:34
Sep 22
99.50
101.09
99.40
100.82
21:34
Sep 22
1.53
96.90
98.16
96.90
98.10
21:34
Sep 22
1.77
96.25
96.80
96.25
96.80
21:25
Sep 22
1.37
94.92 *
21:12
Sep 22
94.94 *
10:15
Sep 22
93.61 *
21:00
Sep 22
94.56 *
21:00
Sep 22
95.00 *
14:30
Sep 22
95.00 *
21:00
Sep 22
93.98 *
14:30
Jul 12
93.48 *
21:00
Sep 22
95.48 *
12:59
Jul 26
96.38 *
14:30
Sep 21
96.38 *
14:46
Aug 01
Current Session cotton commodity
High
Low
Last
Time
Set
Chg
Vol
-
-
-
97.64 *
21:34
Sep 22
-
-
-
99.50
101.09
99.40
100.82
21:34
Sep 22
-
1.53
-
96.90
98.16
96.90
98.10
21:34
Sep 22
-
1.77
-
96.25
96.80
96.25
96.80
21:25
Sep 22
-
1.37
-
-
-
-
94.92 *
21:12
Sep 22
-
-
-
-
-
-
94.94 *
10:15
Sep 22
-
-
-
-
-
-
93.61 *
21:00
Sep 22
-
-
-
-
-
-
94.56 *
21:00
Sep 22
-
-
-
-
-
-
95.00 *
14:30
Sep 22
-
-
-
-
-
-
95.00 *
21:00
Sep 22
-
-
-
-
-
-
93.98 *
14:30
Jul 12
-
-
-
-
-
-
93.48 *
21:00
Sep 22
-
-
-
-
-
-
95.48 *
12:59
Jul 26
-
-
-
-
-
-
96.38 *
14:30
Sep 21
-
-
-
-
-
-
96.38 *
14:46
Aug 01
-
-
-
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