COTTON DAILY REPORT (May 10 th, 2011)

Transcription

1 COTTON DAILY REPORT (May 10 th, 2011) Index 1. Price quote of Cotton of CCI for domestic sales on May 09 th, 2011: Price quote of Cotton of CAI for domestic sales on May 09 th, 2011: Cotton Price at NYBOT (ICE): Cot look A index: Zhengzhou Commodity Exchange (ZCE): Indian Raw Cotton (Spot Rate Ex-Yeotmal): Cotton Crack Price (Average of Maharashtra): Price Summary: Cotton market review May 10 th,

2 1. Price quote of Cotton of CCI for domestic sales on May 09 th, 2011: DOMESTIC SALE QUOTES FOR COTTON SEASON FOR VARIETIES AND GRADES FOR 9th MAY 2011 Branch Variety/Grade Staple length (mm) Micro Rate Rs.PCS Warangal BB PRM PLUS MOD BB PRM MOD BB PRM CONV #49400 BB SPL MOD Adilabad BB PRM CONV #49400 BB SPL MOD BB SPL CONV #49100 # Limited quantity (446 b/s BB Prm Conv, Warangal, 925 b/s BB Prm Conv, Adilabad, 969 b/s BB Spl Conv, Adilabad) Above price quotations are only indicative and not offer from CCI. Final quotations shall be given only on receipt of the firm offers from the buyers. Further, the above quality parameters are indicative only and the buyers should satisfy themselves in this regard before giving offer/completing selection. Source:

3 2. Price quote of Cotton of CAI for domestic sales on May 09 th, 2011: May 09 th, 2011 Standard Descriptions with Basic Grade & Staple in Millimeters based on Upper Half Mean No. Grade Standard 1 ICS-101 Bengal Deshi (RG)/ Assam Comilla 2 ICS-201 Bengal Deshi (SG) Length [ By law 66 A (a) (4) ] Trade Name Grade Staple Micronaire Strength / GPT Fine Fine Below 22mm Below 22mm Rs. Per Candy ICS-102 V-797 Fine 22mm ICS-103 Jayadhar Fine 23mm ICS-104 Y-1 Fine 24mm N.A. 6 ICS-202 J-34 Fine 25mm ICS-105 NHH-44 Fine 25mm ICS-105 LRA-5166 Fine 27mm ICS-105 H-4/ MECH-1 Fine 28mm ICS-105 Shankar-6 Fine 29mm ICS-105 Bunny/ Brahma Fine 31mm ICS-106 MCU-5/ Surabhi Fine 33mm ICS-107 DCH-32 Fine 35mm NOTE: 1. Official spot rate fixed and registered by CAI are for cash against delivery at Upcountry Spot Markets and are inclusive of entry tax and such other levies, if any. The rates are exclusive of S.T./Purchase Tax/CST/VAT as applicable in the respective States at the time of delivery. 2. Staple length: Upper Half Mean Length. 3. Strength: Grams per tex (HVI mode). Source:

4 3. Cotton Price at NYBOT (ICE): Quality- Staple 1 1/16 27 mm Mic to 4.9 NCL Strength: 25 gpt Colour Grade 41-4 Price in Cents/Pound as on May 09 th, 2011 Contract Open High Low Close Change from Prev. close. Jul Oct Dec Exchange Rate: 1 USD= INR 4. Cot look A index: (Quality: Staple 1 3/32 28 mm Mic 3.5 to 4.9 Strength 25 gpt Colour Grade 31-4) May 09 th, 2011: (-0.70) cent/lb 5. Zhengzhou Commodity Exchange (ZCE): Price in Yuan/MT as on May 09 th, 2011 Contract Open High Low Close Change form Prev. Close May Jul Sep Exchange Rate: 1 Yuan= 6.9 INR 6. Indian Raw Cotton (Spot Rate Ex-Yeotmal): QUALITY- STAPLE 29 MM: MIC STRENGTH 28 GPT COLOR GRADE 31-5 Spot Price as on May 09 th, 2011: RS /Candy 7. Cotton Crack Price (Average of Maharashtra): Product Price/Kg Crack Price (Rs.) Parity Seed Cotton Rs Raw Cotton Rs Cotton Seed Rs Crack price is at premium over the raw price

5 8. Price Summary: Market Price - Rs./ Candy Ex- Mumbai Ex- Yeotmal CAI ZCE Cot look Index The ICE Indian cotton is at discount to Chinese cotton and Cotlook Index while it is discount to the ICE (NYBOT). 9. Cotton market review May 10 th, 2011 Domestic Market: CCI The price quotation of spot lint cotton for the Ahmadabad (Gujarat) branch (variety/grade S-6 SUP) is lower Rs 4000 per candy as compared to previous close, and settled at Rs per candy. CAI The lint cotton price for the variety H-4/ MECH-1(Mumbai) is lower Rs per candy as compared to previous close and settled at Rs per candy. NSEL The cotton quotation for the Mumbai delivery center is lower Rs as compared to previous close, and settled at Rs per candy. Cotton prices continue to decline in the lack of demand, particularly from spinning mills. On the other hand, farmers have resorted to panic sales since their hopes of the Centre allowing further export of cotton have been dashed. International Market: ICE The U.S. cotton futures ended mixed on Monday as the market consolidated after last week's commodity sell-off and players adjusted positions before the release of a key government crop report. The USAD's monthly supply/demand report is due on Wednesday. It will contain the first preliminary estimate of supply/demand conditions in the upcoming marketing year (August/July). The benchmark July cotton contract on ICE Futures U.S. fell 0.16 cent to settle at $1.454 per lb, trading from $ to $ It was the lowest close for cotton in almost four months. The new-crop December cotton futures rose 1.49 cents to close at $ cents per lb. Volume traded stood at almost 9,200 lots, nearly two-thirds below the 30-day norm. Zhengzhou ZCE cotton futures prices moved steadily higher, but volume and open interest dropped. The 2011 import quota has reached mills and government will consider additional import quota on price movement. Demand is firstly increasing. The cotton planting progress reached 91.4% as of May 6, up 0.7% from the corresponding period last year. Earlier planting and welcome weather conditions contribute to the faster progress. Meanwhile, the weather forecast indicates that 40-70mm rainfall will take place in most plain area in next 10 days, which will be favorable for further planting.

6 Raw Cotton Pricing Higher the length Higher the Strength Lower the Colour Grade Better Cotton - Higher Price Better Cotton - Higher Price Better Cotton - Higher Price Conversion of ICE cotton in Rs./Candy Example: 1 ICE price is in cents/pound 2 Multiply by 10 and divide by to convert it into USD/Kg 3 The value of second step be multiplied by INR Exchange Rate with USD 4 The value of third step be multiplied by to arrive at Rs/Candy 1 Ice Price: 51 cents/pound 2 (51*10)/453.6 = *48.93= *355.6 = Disclaimer: The report prepared contains information collected from various sources believed to be reliable. However NSEL does not guarantee its accuracy and completeness. It is solely meant for information dissemination and knowledge sharing. Neither NSEL nor its employees accept any liability, whatsoever, for any trading decision and loss incurred from the use of this publication. NSEL or any of its affiliates makes no warranties as to the accuracy of information or results to be obtained from its use.