facebook_pixel

ICAC – Convergence of Cotton and Polyester Prices Should Improve Demand for Cotton

With polyester and cotton prices converging on the world market, the International Cotton Advisory Committee (ICAC) expects world consumption of cotton to increase by five percent to 24.5 million tons in 2014/15.

According to the recent ICAC Secretariat report, many spinners decreased the share of cotton in yarn in favor of greater use of polyester after international cotton prices spiked in 2010/11. At the start of 2013, the gap between cotton and polyester prices widened, as polyester prices remained fairly stable at around 74-76 cents/lb until dropping to 65 cents/lb in April of this year.

During the same period, international cotton prices climbed higher, reaching 99 cents/lb at their peak.

The situation changed significantly in July, with the Cotlook A index falling to 80 cents/lb while polyester has climbed back to nearly 73 cents/lb. Furthermore, the price of cotton in China has also fallen from around 141 cents/lb during most of 2013/14 to around 126 cents/lb in the last few weeks.

In addition to their world forecast, ICAC expects cotton consumption in Asia to grow strongly in 2014/15, led by China’s five percent increase to 7.9 million tons. India’s consumption could grow by six percent to 5.4 million tons. The rest of Asia is projected to expand by eight percent to nearly 2.4 million tons.

World production in 2014/15 is forecast to be 25.5 million tons, down from 26.1 million tons in 2013/14. Although the monsoon has arrived in India, the volume of precipitation has varied widely, and yield is likely to suffer in some places. India’s production is expected to be just over 6 million tons in 2014/15.

On the other hand, China – with average yields nearly three times higher than India – is expected to produce around 6.2 million tons. The United States has experienced abundant rains this season, and its production is projected to grow to nearly 3.5 million tons.

Trade is forecast to decline to 7.9 million tons in 2014/15, driven mainly by a 26 percent fall in imports by China to 2.2 million tons. India’s exports are likely to fall to 800,000 tons, which would be less than half of its exports in 2013/14. Exports from the United States are forecast to rise nine percent to 2.5 million tons in 2014/15.

The Chinese government will close out 2013/14 having sold around 2.3 million tons of cotton, which is 37 percent of the 6.3 million tons purchased this season. As this is the second successive year in which total purchases by the government exceeded sales, government stocks have increased again, and China’s total ending stocks are now estimated to be nearly 11.9 million tons.

World stocks outside China are up six percent to 8.6 million tons. This is the largest volume of world ending stocks outside China since 2007/08, when they reached 8.8 million tons, and is weighing heavily on prices for 2014/15.

 

Source – ICAC

Topics: ,

Leave a Reply

International Stories
International

First Estimate of India’s New Season Cotton Crop Revealed

November 15, 2017

The first estimate of India’s current season cotton crop has been released.

International

Some New Thoughts for the Cotton Industry

August 23, 2017

Dr. Seshadri Ramkumar of Texas Tech spent part of his summer in India, observing and discussing the country’s cotton industry and goals. He shares some of his observations in this commentary.

International

International Cotton Leader Showcases Innovations

July 12, 2017

Cotton Incorporated’s Kater Hake urged India producers to find new applications and functionalities for cotton and textile production.

International

Kai Hughes Named ICAC Executive Director

July 5, 2017

Kai Hughes has been named the new Executive Director of the International Cotton Advisory Committee.

International

Indian Textile Industry Aims to Reach $650 Billion by 2025

July 5, 2017

India’s Prime Minister has urged the country’s textiles sector to reach $650 billion by 2025.

International

Indian Company Debuts Cotton for Technical Textiles

June 22, 2017

A company based in South India has developed mechanically-processed cotton varieties suitable for use in absorbent technical textiles products.

International

India Expects 20% More Cotton in 2017/18

May 10, 2017

India’s cotton crop for the season beginning in October 2017 may see up to a 20% percent increase in production.

Around The Gin
Product News

Bayer Looking for FiberMax One Ton Club Growers for 2017

November 16, 2017

Cotton growers who produce an average of 2,000 lb/A on 20 or more acres planted to FiberMax varieties in 2017 are eligible to be part of the 13th annual FiberMax One Ton Club.

Product News

Monsanto Delays NemaStrike for Additional Review

November 2, 2017

After finding cases of skin irritation, Monsanto is pulling its nematode seed treatment NemaStrike for further product review.

Product News

Intrepid Trio: Naturally Balanced Nutrition in Every Granule

November 1, 2017

Intrepid Trio contains three essential nutrients for cotton plants.

Product News

Save Time, Increase Efficiencies with Mixmate

November 1, 2017

Mixmate from Praxidyn is a precision chemical mixing system for small farms to large enterprises.

Product News

Crumpler Ironworks & Fabrication

November 1, 2017

Crumpler Ironworks & Fabrication is committed to providing the highest level of service, honesty and integrity, regardless of project size.

Product News

Delivering Proven Performance Across the Cotton Belt

November 1, 2017

Seed varieties, traits and crop protection products from Bayer deliver proven performance to growers across the Cotton Belt.

Product News

Growers Continue to Count on Americot and NexGen

November 1, 2017

Americot is dedicated to working with cotton growers throughout the Cotton Belt to provide elite performing NexGen varieties within the marketplace.

Product News

Deere Adds New Narrow Track Versions to 9RX Tractor Lineup

November 1, 2017

John Deere has added three new 9RX Narrow Track Tractors, expanding its lineup of high-horsepower machines.

Latest News
International

First Estimate of India’s New Season Cotton Crop Revealed

November 15, 2017

The first estimate of India’s current season cotton crop has been released.

International

Cotton Market Facing Price Pressure

October 3, 2017

Thanks to expected record yields in many countries, the cotton market will likely show some signs of pressure in the short term.

International

Lunchaprasith Wins Cotton Grower Essay Contest at Cotton Institute

August 24, 2017

In his winning essay from the 2017 ACSA International Cotton Institute, Nudhanai Lunchaprasith offered a personal reflection on the evolution of technologies in cotton marketing.

International

Some New Thoughts for the Cotton Industry

August 23, 2017

Dr. Seshadri Ramkumar of Texas Tech spent part of his summer in India, observing and discussing the country’s cotton industry and goals. He shares some of his observations in this commentary.

International

International Cotton Leader Showcases Innovations

July 12, 2017

Cotton Incorporated’s Kater Hake urged India producers to find new applications and functionalities for cotton and textile production.

International

Kai Hughes Named ICAC Executive Director

July 5, 2017

Kai Hughes has been named the new Executive Director of the International Cotton Advisory Committee.

International

Indian Textile Industry Aims to Reach $650 Billion by 2025

July 5, 2017

India’s Prime Minister has urged the country’s textiles sector to reach $650 billion by 2025.

International

Indian Company Debuts Cotton for Technical Textiles

June 22, 2017

A company based in South India has developed mechanically-processed cotton varieties suitable for use in absorbent technical textiles products.

International

India Expects 20% More Cotton in 2017/18

May 10, 2017

India’s cotton crop for the season beginning in October 2017 may see up to a 20% percent increase in production.

International

Collective Effort Needed to Advance Cotton Industry

May 5, 2017

The cotton industry needs a collective effort by all of its stakeholders to advance.

International

Register Now for ACSA International Cotton Institute

April 12, 2017

This summer, some of cotton’s young minds will gather to learn business details at the ACSA International Cotton Institute.

International

Cotton Industry Veterans Launch New Commodities Firm

April 11, 2017

Three veteran analysts and traders have combined their collective 60+ years of cotton industry experience to form the Rose Commodity Group.

International

Global Cotton Contract All Hope, No Action?

April 10, 2017

The ICE Global Cotton Futures Contract is fighting for market traction, with no significant trading volume since June 2016.

International

Indian Cotton Situation Currently Stable

March 17, 2017

The cotton situation in India from both producers’ and users’ points of view seems to be stable.

International

Enrollment Open for Texas International Cotton School

February 28, 2017

Registration is open for the 37th session of the Texas International Cotton School, scheduled for August 7-17 in Lubbock.