News & Reports
Plexus Market Comments 10 Oct
  • So where do we go from here?

    From a technical perspective the market has performed quite well over the last three weeks, showing an ability to bounce back from weakness and forming a ‘rounding bottom’ in the process, which is often a sign of further strength to come. However, as soon as the market reaches above 6200 there seems to be strong resistance from scale-up trade selling.
Stock Position as on 10-Oct-2019
  • MCX

    Total Utilized Capacity = 17,400 Bales
    Eligible for Exchange Delivery = 000 Bales
    Quantity in Process = 000 Bales
    Rejected Stocks = 100 Bales
Cotton Indices and Spot Rate As on 10-Oct-2019
  • US Upland Spot Rate 58.56 -0.67

    Brazil Cotton Index 60.05 -0.46%

    KCA Spot Rate 8,750 unch

    MCX Spot Rate 19,430

    Cotlook A Index 72.50 +0.75

    China Cotton Index
    As on 11-Oct-2019

    CC Index 3128 12628 +00
    CC Index 2127 11622 -5
    CC Index 2129 12982 +1
ICE Cotton Update
  • Cotton slips after WASDE as investors focus on trade negotiations

    ICE cotton futures slid on Thursday, as investors awaited further developments in China-U.S. trade negotiations even as the World Agricultural Supply and Demand Estimates (WASDE) report showed a slight reduction in cotton inventories.
U.S. EXPORT SALES
  • For Week Ending 03-10-2019

    2019-2020
    Net Upland Sales 1,88,800
    Upland Shipments 1,49,100
    Net Pima Sales 9,600
    Pima Shipments 10,300
    TOTAL SALES 1,98,400

    2020-2021
    Net Upland Sales -5,300
    Net Pima Sales 0
    TOTAL -5,300
Thompson On Cotton 09-Oct-2019
  • Market Waits For Harvest Dust To Settle

    Since early September, cotton prices have managed to hold steady above 60 cents. This is surprising, considering the lack of bullish news and weak fundamentals. Nevertheless, more than once the market has tried to move higher on spec short covering. Each attempt, though was met by trade selling as growers viewed these 2- to 3-cent rallies as pricing opportunities.

    Consequently, it has closed within a 231-point spread for almost a month.
Jernigan Global Weekly 07-Oct-2019
  • HIGHLIGHTS

    1. IN THIS AGE OF FAKE MEAT, DISRUPTION AND ARTIFICAL INTELLIGENCE, CAN AN 8,000-YEAR-OLD FIBER BECOME COOL AGAIN?

    2. AUSTRALIA ENTERS PLANTING PERIOD; WORST FEARS MATERIALIZE

    3. PAKISTAN CROP LIKELY TO FALL TO 7.8 MILLION BALES OR LESS

    4. US: UNWELCOME RAINS DAMAGE WEST TEXAS COTTON CROP

    5. HONG KONG: SHOWDOWN NEARS AS BEIJING’S HEAVY HANDED MEASURES INCREASE
Rose On Cotton 06-Oct-2019
  • ICE COTTON PUSHES HIGHER, CONTINUES TO DEFEND 60.00 LEVEL

    The ICE Dec contract gained 77 points last week to settle at 61.67. Dec did not trade south of the 60.00 level last week, which is technically supportive. The Dec – Mar spread remains at less than full carry, and near unchanged Vs last week at (73).

    Last weekend, our proprietary model (timely prediction available in our complete weekly report) predicted a settlement that was to be near unchanged to lower Vs the previous Friday’s finish, which proved to be incorrect.
Gujcot Weekly Report
  • Dated: 05-October 2019

    Market Movement from 30th Sep 2019 to 05th Oct 2019

    • During this week NY December future gained 77 points and hold the psychological 61 cents mark. Even with small gain, out of 6 trading sessions market closed in green in 5 sessions. NY December once crossed resistant of 62.50 but was not able to sustain that level. Overall without fresh seller market holds its gain.
PCCA Cotton Market Weekly
  • OCTOBER 4, 2019

    FUTURES PRICES GAIN 132 POINTS THIS WEEK

    • Open Interest Increases
    • Crop Progress Ahead of Averages
    • USDA Reports Weekly Export Sales and Shipments
    • U.S. Economic Data Gloomy
    • Supply and Demand Estimates Coming
Cleveland On Cotton 04-Oct-2019
  • Volatility Ahead As Many Bales Remain Unpriced

    Granted, it was slow motion, but this was a bonus week, a happy week as the market gave us a little of the Beatles 1963 hit version of Twist and Shout. Since the prior week’s solid attempt to close below the critical 60.25 support price, the market has made its trek higher and touched 62.18 cents this week before settling at a very healthy 61.71 cents.
Monthly Rate Movement Report – Sep 2019
  • Monthly Rate Movement Report – Sep 2019

    • Daily Physical Spot Rate
    • MCX Cotton Daily Closing Rate
    • USD-INR Exchange Rate Closing
    • Cotlook Index
    • ICE Future Closing
    • NCDEX Kapas Rate
    • MCX Future Closing
    • NCDEX and MCX converted into Rs. Candy Rate
ICAC - Executive Summary
  • Highlights from the October 2019 edition of ‘Cotton This Month’ include:

    • Global production is projected to outpace consumption slightly in 2019/20
    • East Asian countries will continue to lead the world in consumption
    • Several major consuming countries will post consumption gains, but mostly 2% or less
    • High stocks and low demand for exports have driven prices to their lowest levels since 2016
MSP 2019-2020
  • Government of India raised Minimum Support Price of Kapas.

    Medium Staple 5,005 to 5,150
    Medium Long Staple 5,255 to 5,405
    Long Staple 5,450 to 5,550
    Extra Long Staple 5,750 to 6,750
MSP 2018-2019
  • Government of India raised Minimum Support Price of Kapas.

    Medium Staple 4,900 to 5,000
    Medium Long Staple 5,150 to 5,300
    Long Staple 5,350 to 5,450
    Extra Long Staple 5,650 to 6,650
China Cotton Auction
  • From May 5 to Sep 27, the cumulative turnover of reserve cotton was 979,100 tons, and the turnover rate was 85.94%.
Jernigan Global Weekly 23-Sep-2019
  • HIGHLIGHTS

    1. CHINA CANCELS US PURCHASES; NO COTTON INCLUDED IN GOODWILL PURCHASES

    2. CAN INDIA’S MONSOON PRODUCE TOO MUCH RAIN?

    3. INDONESIAN COTTON SECTOR FAILS TO TAKE ORDERS FROM CHINA

    4. US PIMA EXPORT DEMAND WEAK DUE TO ABSENCE OF CHINA

    5. PAKISTAN IMPORT DEMAND ACTIVE FOR LOW GRADES
Cotton Inc. Monthly Economic Letter September-2019
  • Cotton Market Fundamentals & Price Outlook

    RECENT PRICE MOVEMENT

    After falling in July, benchmark prices were stable in August and the first half of September.

    • The NY December contract has held to levels near 58 cents/lb since mid-August.

    • The A Index was steady near 70 cents/lb.

    • In international terms, the China Cotton Index (CC Index 3128B) decreased from 88 to 83 cents/lb between early August and the present. Over the same period, the RMB eased 0.9% against the USD (from 7.05 to 7.12 RMB/USD).
ICAC - Executive Summary
  • Highlights from the September 2019 Cotton This Month include:

    • Global production is expected to increase 5% to 26.9 million tonnes
    • Global consumption is projected to increase 1% to 26.9 million tonnes
    • The excess production will cause global stocks to swell to 18.3 million tonnes
    • Prices will be under increasing pressure as a result of the growing supply
Monthly Rate Movement Report – Aug 2019
  • Monthly Rate Movement Report – Aug 2019

    • Daily Physical Spot Rate
    • MCX Cotton Daily Closing Rate
    • USD-INR Exchange Rate Closing
    • Cotlook Index
    • ICE Future Closing
    • NCDEX Kapas Rate
    • MCX Future Closing
    • NCDEX and MCX converted into Rs. Candy Rate
US Export Sales Summary
  • 01-Aug-2019 To 22-Aug-2019

    2019-2020

    COMMITMENTS
    PIMA 1,53,645
    UPLAND 80,84,753
    TOTAL 82,38,398

    SHIPMENTS
    PIMA 29,297
    UPLAND 8,61,924
    TOTAL 8,91,221

    2020-2021 SALES

    UPLAND 4,63,124
INDIA Cotton and Products Update
  • Highlights

    Post estimates marketing year (MY) 2019/20 cotton production at 29 million 480 lb. bales (37.1 million 170-kilogram bales/6.3 MMT) with a planting area of 12.7 million hectares. MY 2019/20 mill consumption remains weak as mills accumulate greater cotton yarn stocks due to poor demand. Export prospects have diminished while imports are expected to remain stable as they are price competitive against domestic supplies.
USDA - Cotton and Wool Outlook
  • Cotton and Wool Outlook

    U.S. Cotton Product Trade Increasing in 2019

    The latest U.S. Department of Agriculture (USDA) estimates indicate that total U.S. cotton textile and apparel trade rose during the first half of 2019, compared with the corresponding 2018 period. U.S. cotton product imports totaled the equivalent of 9.0 million 480-pound bales of raw cotton during January-June 2019—compared with 8.8 million bales for the first 6 months of 2018—while cotton product exports declined slightly to 1.7 million bale-equivalents.
India's Cotton Textiles Export Update for FY (April – June) 2019-20
  • India’s Cotton Textiles Exports

    Cotton Textile exports reached a level of USD 739.17 million in June 2019 marking a decline of (-) 30.4 per cent against the corresponding month of June 2018, wherein exports were valued at USD 1,061.96 million.

    In rupee terms, exports during the month of June 2019 reached a level of Rs. 5,132.72 cr. as against Rs. 7,199.39 Cr. in June 2018 marking a decline of (-) 28.7 per cent in rupee terms.
USDA -World Markets and Trade
  • China cotton imports in 2019/20 are expected to surpass the previous year’s robust level, reinforcing its position
    as the world’s largest importer. The current 2018/19 estimate, boosted this month, is expected to be the largest in 5 years as China supplements domestic supplies amid ongoing auctions of State Reserve stocks. Despite this strong upward trend in imports, U.S. exports to China have weakened as Brazil, Australia, and other countries have expanded both exports and market share.
ICAC - Cotton This Month
  • Looking Beyond the Uncertainties of Trade Tensions  

    The trade dispute between the United States and China has impacted cotton demand and supply chains over the course of the past year. On 1 June 2019, China is set to increase tariffs on $60 billion of US goods in retaliation to the US tariff increase on the remaining $200 billion worth of Chinese imports.
Indian Raw Cotton Export-Import 2018-19
  • INDIAN COTTON EXPORT
    Including Cotton Waste

    Oct-2018 to Mar-2019
    6,63,386 Tones
    39,02,271 Bales of 170 Kg

    INDIAN COTTON IMPORT
    Including Cotton Waste

    Oct-2018 to Mar-2019
    1,01,072 Tones
    5,94,541 Bales of 170 Kg

USDA Prospective Plantings
  • USDA Planting Intention

    US All cotton planted area for 2019 is estimated at 13.8 million acres, 2 percent below last year.

    Upland area is estimated at 13.5 million acres, down 2 percent from 2018.

    American Pima area is estimated at 255,000 acres, up 2 percent from 2018.
GUJCOT CROP SURVEY REPORT 2018-19
  • Saurashtra
    Area in Hectare = 19,29,800
    Yield Kg/ha = 447.88
    Crop in 170 Kgs Bales = 50,84,224

    North Gujarat
    Area in Hectare = 3,76,800
    Yield Kg/ha = 575.84
    Crop in 170 Kgs Bales = 12,76,340

    Main Line
    Area in Hectare = 3,49,200
    Yield Kg/ha = 749.92
    Crop in 170 Kgs Bales = 15,40,429

    Kutch
    Area in Hectare = 56,300
    Yield Kg/ha = 825.00
    Crop in 170 Kgs Bales = 2,73,221
Brazil: More cotton acreage is being planted
  • Shifting Corn Acres to Cotton

    While corn remains the major safrinha crop for Brazilian farmers, more cotton acreage is being planted in Mato Grosso this spring, as well.

    Over the past two years, cotton planting has increased by nearly one-third for the safrinha in Mato Grosso. The Brazilian Association of Cotton Producers(Abrapa) forecast cotton acreage to grow to 1.4 million hectares (3.46 million acres). Mato Grosso accounts for about 88% of Brazil’s cotton production.
Gujarat Cotton Sowing Final Report
  • 08 October 2018

    Gujarat Area under Cotton Sowing reached 27,12,100 Hectares.

    Saurashtra 19,29,800 Hectares.
    North Gujarat 2,73,500 Hectares.
    Middle Gujarat 3,07,500 Hectares.
    South Gujarat 1,44,900 Hectares.
    Kutch 56,300 Hectares.
All India Cotton Sowing Till 19-Sept
  • All India Cotton sowing area reached 1,20,64,100 Hectares against 1,21,71,900 hectares same period last year.

    North India 14,45,100
    Central India 75,28,900
    South India 29,15,000
Historical Revisions to Indian's Cotton Balance Sheet - USDA
  • Historical Revisions to Indian's Cotton Balance Sheet - USDA

    Historical revisions have been made to India’s balance sheet for the years 2002/03 through 2013/14, with the stock adjustment carried forward. The revisions are based on the conclusion that market yard arrivals data underreported arrivals in the early portion of the harvest season. This conclusion was based on observed market activity in November for several years.
China Cotton Auction FINAL
  • 12-March-2018 To 30-Sept-2018

    METRIC TONNES
    Reserve Stock End Of 2017 5,256,286
    Cumulative Sales 2,510,279
    Remaining Stock 2,746,007

    BALES
    Reserve Stock End Of 2017 24,142,123
    Cumulative Sales 11,529,712
    Remaining Stock 2,612,411
GST Refund Notification
  • GST Refund of unutilised input credit

    As per notification issued yesterday, Refund will be granted of unutilised GST credit on raw materials purchased after 1st August, 2018.
MSP 2017-2018
  • Government of India raised Minimum Support Price of Kapas.

    Medium Staple 3,770 to 3,870
    Medium Long Staple 4,020 to 4,170
    Long Staple 4,220 to 4,320
    Extra Long Staple 4,520 to 5,520
MSP 2016-2017
  • Government of India raised Minimum Support Price of Kapas.

    Medium Staple 3,610 to 3,710
    Medium Long Staple 3,860 to 4,010
    Long Staple 4,060 to 4,160
    Extra Long Staple 4,360 to 5,360
MSP 2015-2016
  • Government of India raised Minimum Support Price of Kapas.

    Medium Staple 3,550 to 3,650
    Medium Long Staple 3,800 to 3,950
    Long Staple 4,000 to 4,100
    Extra Long Staple 4,300 to 5,300
MSP 2014-2015
  • Government of India raised Minimum Support Price of Kapas.

    Medium Staple 3,500 to 3,600
    Medium Long Staple 3,750 to 3,900
    Long Staple 3,950 to 4,050
    Extra Long Staple 4,250 to 5,250
MSP 2013-2014
  • Government of India raised Minimum Support Price of Kapas.

    Medium Staple 3,450 to 3,550
    Medium Long Staple 3,700 to 3,850
    Long Staple 3,900 to 4,000
    Extra Long Staple 4,200 to 5,200
MSP 2012-2013
  • Government of India raised Minimum Support Price of Kapas.

    Medium Staple 3,400 to 3,450
    Medium Long Staple 3,600 to 3,750
    Long Staple 3,800 to 3,900
    Extra Long Staple 4,100 to 5,100
MSP 2011-2012
  • Government of India raised Minimum Support Price of Kapas.

    Medium Staple 2,600 to 2,650
    Medium Long Staple 2,800 to 3,050
    Long Staple 3,100 to 3,300
    Extra Long Staple 3,500 to 4,500