As we all know that cotton yarn prices had a steep fall in April this year and raw cotton prices fell by almost 15 to 20% 6 months ago but it finally ended as the year 2011 ended. In November, cotton yarn demand emerged in a big way from China, Bangladesh, Sri Lanka, Vietnam and Egypt. Many mills were shut down or were running with low capacity because of volatile cotton prices.
As mention in the Business Recorder of Pakistan, the benchmark cotton for March delivery on ICE Futures US settled at 86.29 cents per lb is unchanged. Another source from India, Economic Times reports that Spinning mills are expected to do well in the coming quarters due to low cotton prices and an almost depleting inventory of textile companies in the entire value chain of this business. There is an expectation of moderate growth in demand from the high-end of the value chain–chiefly companies, which are into manufacturing of fabrics and garments.
When we see rapid change in prices, we must stay knowledgeable of these changes so that we stay careful of any buying or selling of cotton yarn. From the sources of Cotlook, following data was collected with the year end:
China Cotton Index (8:16 GMT 31st Dec, 2011)
China holiday notice (6:30 GMT 31st Dec, 2011)
ICE cotton closes on slight gains (19:38 GMT 30th Dec, 2011)
US export sales (14:13 GMT 30th Dec, 2011)
Lubbock set to break record low annual precipitation (13:59 GMT 30th Dec, 2011)
Pakistan: local prices unchanged (13:14 GMT 30th Dec, 2011)
India: arrivals remain above 200,000 bales (10:28 GMT 30th Dec, 2011)
India: Tropical storm poses little threat to cotton (10:07 GMT 30th Dec, 2011)
Greece: ginners seek to generate cash (9:10 GMT 30th Dec, 2011)
Australia: Namoi/CNCGC proposed joint venture put on hold (8:58 GMT 30th Dec, 2011)