Textile Sphere News Roundup - 15 Nov 2024
1. ICE Cotton Rebounds from Monthly Low as Crude Oil Recovers
ICE cotton futures experienced a modest
rebound after recent lows, though gains were limited by a stronger dollar.
Traders have now shifted their focus to the March 2025 contract, maintaining high
trading volumes. The recovery in crude oil prices eased pressure on polyester
costs, following earlier declines. The cotton market was closed Thursday for
Veterans Day. On Wednesday, the ICE March 2025 contract closed at 71.10 cents
per pound, up slightly from the previous monthly low. Traders are closely
watching the USDA’s delayed export sales report, focusing on Chinese demand as
the dollar index reached near a seven-month high, making cotton more expensive
for international buyers.
2. CCI Commences Cotton Procurement at MSP in Five States
The Cotton Corporation of India (CCI) has
started procuring cotton at minimum support prices (MSP) across five states in
response to lower market prices. Lalit Kumar Gupta, CCI’s Chairman, announced
that MSP operations for the season, spanning October to September, have already
led to the purchase of 2.25 lakh bales. Daily cotton arrivals are estimated at
1.3-1.4 lakh bales, though Indian cotton remains about 5% more expensive than
global prices due to low yarn demand and limited exports. On November 13th,
Shankar-6 ginned cotton was priced at Rs. 54,500 per quintal.
3. Better Cotton Urges Targeted Financial Support for Farmers at COP29
At the COP29 summit in Baku,
Azerbaijan, Better Cotton is calling on global leaders to prioritize farmers in
climate strategies and recognize the role of sustainability frameworks.
Representing over two million farmers globally, Better Cotton advocates for
developed nations to commit to financial backing for climate initiatives in lower-income
countries. Research by Better Cotton warns that by 2040, half of global
cotton-growing regions could face severe climate risks, with some regions
experiencing multiple hazards. Initiatives like Better Cotton's 'Impact Fund'
and 'Unlock Programme' are being highlighted for their positive impact on
sustainable cotton production.
4. Cotton Prices Decline Amid Weak Yarn Demand and Payment Challenges
Cotton prices dipped by 0.54%,
closing at Rs. 55,380 due to low demand in yarn markets and payment constraints.
India’s cotton production forecast for 2024/25 has been lowered by 7.4% to 30.2
million bales, impacted by reduced acreage and adverse weather. The USDA’s
revised forecast reflects crop quality issues from heavy rains and pests, while
global production is projected to increase. In India, cotton acreage fell by 9%
this season as farmers favored more profitable groundnuts. This production
decline is likely to raise imports to 2.5 million bales and reduce exports to
1.8 million bales. Technically, cotton prices face resistance at Rs. 55,630,
with potential support at Rs. 54,790.
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