Source: AgFax.com
By Ernst Undesser, AgFax Web Editor
Markets/Trade
- DTN cotton correspondent Duane Howell reports that U.S. cotton futures are moderately lower with muted initial reaction to weekly export reports which came in in the middle of traders’ expectations.
- Cotton Market News reports that Pakistan cotton prices remain steady in an upward trend, supported by limited supply, and causing the government to raise the cotton spot rate.
- India’s The Economic Times reports that Indian cotton prices are trading steady to weaker due to a slowdown in exports, while tightening supplies and firm international markets help support prices.
- Cotton Market News offers a report from Reuters where a Chinese official assures that China’s cotton stocks will not put pressure on the global market as prices are much higher than those of international markets.
- AgriMoney.com reports that cotton prices for the 2013-2014 season are “not-bullish” as U.S. planted acres are likely to rise from initial low estimates. Additionally, as prices near the $1 mark it is likely that China will attempt to offload some its cotton stocks which may seem more favorable to domestic traders after factoring in shipping costs.
Production
- Oliver Renick and Marvin G. Perez report for Bloomberg that the ongoing rally in cotton prices coupled with lingering drought conditions in the U.S. could mean a much larger cotton crop this season than initially expected. While corn and soybean prices have fallen in the last few months, cotton prices have surged up 37% from their lows in June, making the switch to grains much less profitable. Additionally, some areas of the U.S., especially in the Plains, still don’t have enough moisture to support growing grains.
- Luzi Ann Javier of Bloomberg reports that globally, farmers are still more likely to make more planting grains than cotton even after the fiber’s rally. The International Cotton Advisory Committee predicts that global planted cotton acres will continue to decline for the 2013-2014 season.
- Pakistan’s The Express Tribune reports that cotton production in Pakistan so far registers 11.7% lower than last season.
- Vishwanath Kulkarni reports at The Hindu Business Line that the reduced usage of pesticides in Indian cotton farms following the introduction of Bt cotton has seen a surge in the number of previously minor sucking pests, such as white fly, mealy worm, and jassid. These pests are now causing substantial yield damage to cotton crops across the country, as well as costing farmers more in pesticides to keep them under control.
EARLIER THIS WEEK
Markets/Trade
- Fiber2Fashion.com reports that Indian cotton prices have risen sharply in the last two weeks, causing concern for both growers and mills. The Southern India Mills Association blames the government and traders for hoarding cotton stocks instead of releasing them onto the market, and warns that price volatility is bad for the entire cotton industry.
- Abdel Latif Wahba reports at Bloomberg that Egypt’s cotton exports last week totaled 5615 metric tons.
- Reuters reports that complaints by textile mills have caused the Chinese government to issue additional cotton import quotas for April. Additionally, the government’s cotton stockpiling program is set to end by the end of the month, and state sales from stockpiles are expected to step up in coming months.
Production
- Andrew Beard of Central Queensland News reports that cotton picking season has officially begun in Australia, with good expected yields and quality if the weather remains good.
Safety
- Pakistan’s The News International reports that a major fire that broke out near Godown Chowrangi called firefighters from all over the city to combat the blaze, but had still not been put out after over 21 hours. The blaze gutted huge stocks of cotton bales, but full damage assessment could not be made til the fire was extinguished. There are no reports of human injuries. (Source: AgFax.com)