MARKET OUTLOOK

India: Cotton lint prices were quoted steady amid improvement in demand from millers and increasing arrivals at major markets across west India on Monday. Physical activity at the North India cotton market on Monday remained dull on absence of demand from both upper and lower level. According to market sources, leading spinners are off the market for the last couple of sessions and are not making fresh deals. • The Indian rupee recovered from an early slide on Tuesday as gains in the domestic stock market raised hopes for foreign fund inflows, but broad dollar strength overseas could prevent sharp gains. At 10 a.m. (0430 GMT), the partially convertible rupee was at 48.79/80 per dollar, off a low of 49, and slightly stronger than its previous close of 48.84/85. ♦ US Cotton Futures crumbled from investment fund sales to settle lower on Monday and the market may edge lower on follow-through pressure this week, brokers said. The key March cotton contract fell 2.65 cents or by 5.37 percent to finish at 46.67 cents per lb, trading between 46.58 and 49.98 cents. ♦ In Pakistan, steady trend was witnessed on cotton market on Monday as ginners adopted cautious attitude after the issuance of Trading Corporation of Pakistan (TCP) tender, dealers said. The official spot rate was unchanged at Rs 3200, they said. Phutti prices in both Punjab and Sindh were at Rs 1600-1750, they added. ♦ In China, 6040 tons of cotton concluded on CNCE's e-market on Monday, 540 tons less than the previous session. There were 120 tons of cotton traded on MD contracts. Open interests decreased by 40 tons to 57160 tons. Forward contracts were weaker than nearby contracts, which MA0901 gained by 63 Yuan to 11563 Yuan per ton, MA0903 lost by 35 Yuan to 11763 Yuan per ton.

COTTON & TEXTILE NEWS

• Recession affects export target of Indian cotton body: Despite having bumper cotton production in the country, the Union Textile Minister Shankarsingh Vaghela has expressed concern that the Cotton Corporation of India (CCI) could not achieve its target of exporting cotton worth 55 million dollars due to recession. The cotton production in the country has been increasing since last five years and the Textile Minister has expressed hope that the production will touch 322 lakh bales in 2008-09. The cotton production was 179 lakh bales in the country in 2003-04 and is expected to reach a record level of 322 lakh bales in 2008-09, Vaghela said. According to the Cotton Corporation of India (CCI) cotton production in Gujarat constitutes around 34 per cent of the total country's production and Gujarat has turned into a large cotton producing state in the country. The Union Textile Minister said that Gujarat is in leading position in both quantity of production and quality of cotton in the country. He said that CCI has a goal to export cotton of 55 million dollars by 2010 but the target could be achieved only 70 per cent due to recession. The cotton consumption in the country has been increasing. In 2003-04, cotton consumption was around 177 lakh bales which has gone up by 36 per cent in 2007-8 and during the current cotton season the Cotton Advisory Board has estimated cotton consumption in the country at the same level of last year. Courtesy - The Hindu
• India Cotton Farmers’ Local Sales Drop on Lower Output, Price: India’s cotton farmers, together the world’s second-biggest producers, sold 20 percent less in the crop season that began Oct. 1 because of a lower than expected harvest and a decline in prices. Market arrivals fell to 14 million bales as on Jan. 10 from 17.4 million bales in the year-ago period, the Cotton Corp. of India, the nation’s biggest buyer, said on its Web site. Daily arrivals are about 220,000 bales of 170 kilograms each, it said. The biggest decline was in Gujarat and Maharashtra, India’s largest cotton-producing states, Cotton Corp. said. Arrivals in Gujarat fell to 3.1 million bales from 5.7 million bales a year earlier, and a total 3.09 million bales were brought to markets in Maharashtra, down from 3.8 million bales a year earlier. India’s output may climb 2.2 percent to 32.2 million bales in the year ending September from a year earlier, according to the Cotton Advisory Board. Courtesy - Bloomberg
• In Pakistan, International expo on textile & garment machinery from April 5: The International Textile Asia 2009 Exhibition, one of the most promising and enduring Event to be held for the 5th successive year at the Karachi Expo Centre from 05 - 08 April 2009 is the official event of the Federal Ministry of Textile Industry. The event is being organized at the most opportune time when the government is looking forward to modernize and upgrade the textile sector of the country for better quality products and enhanced productivity. The exhibition aims to focus on the immense buying selling potential of textile & garment machinery, accessories, raw material supplies, chemicals and allied services under one roof. Cotton is the cash crop of Pakistan. The quality of cotton and cotton related products of Pakistan are unmatched in the international markets. The ever-growing textile industry of the country has shown consistent expansion and stability over the last many years. The exports of textile and textile products of Pakistan have shown a significant increase in the recent years. The government has offered various incentives for the industry’s up gradation and modernization. Pakistan is at the center of a rapidly developing textile & garments manufacturing region. Apart from fulfilling its local requirements, Pakistan has emerged as the textile hub of the region. There exists a strong political will to modernize the textile sector and there is an increasing demand for compliance with ISO and other international quality certifications and standards. As the textile industry of Pakistan being is in the midst of industrial up gradation and the businessmen are seeking newer solutions to bring more efficiency in their production systems. Therefore, the pioneer of grasping this opportunity will be the most successful business organization in Pakistan as none of the local industry can cater this tall order. National organizations will enjoy the benefit of globalization and will witness more joint ventures and collaborations between local and international brands.