GLOBAL MARKET AND EXCHANGE INFORMATION
AS OF January 21st, 2011
International Cotton/Yarn Prices
-
2010/2011 Cotlook A Index* price as of January 13, 2011: 176.8
| Seasons Averages |
2006/07
2007/08
2008/09
2009/10
2010/11
|
59.15
72.90
61.20
77.54
132.10
|
-
Upland Spot Price Quotation (average) as of January 12, 2011: 141.05 (as of January 13, 2010: 67.16)
-
2010 Yarn Index** (as of 1/14/11) – Percentage of comparable average values for “Year 2005 = 100”
(For India, Pakistan, Indonesia, China & Turkey)
|
This Week
Last Week
Last Month
Last Year
|
229.08
227.92
227.92
128.43 |
-
Polyester** (as of 1/14/11): Four markets with current prices reported (US cent per pound) and compared to last year. All prices first quality semi-dull fibre (1.7 decitex and 38 mm staple)
| |
This Week |
Jan 2010 |
| US |
94.0 |
82.0 |
| China |
90.3 |
65.4 |
| Taiwan |
89.1 |
65.7 |
| Pakistan |
93.4 |
67.0 |
-
US Dollar Exchange Rates (US dollars to local currency) as of January 21, 2011
| |
Current |
US YTD Change (%) |
|
China
India
Japan
Pakistan
Taiwan
Euro
|
.1518 (6.58)
.02189 (45.68)
.012047 (83.01)
.01166 (85.76)
.03419 (29.24)
1.3475 (.7421)
|
-0.1
2.2
2.2
0.1
0.3
-0.8 |
Comment (as of 10/15/2010): For the two month period (August through September 2010) the Cotlook A average index value has increased approximately 25% compared to 2009/2010 season’s average. For the next several months prospects for crop sizes during the next growing season will be scrutinized closely. Much enthusiasm for cotton is discernable in Southern Hemisphere producing countries.
In view of the current volatility of raw cotton and yarn markets, government trade policies (import/export restrictions and taxes) take on greater significance.
According to estimates by both Cotton Outlook and USDA, the global cotton supply and demand for the 09/10, 10/11 seasons have resulted in a decrease in world stocks of approximately 3.5 M tons. Cotton Outlook’s global supply and demand estimate for 2011/2012 season is not due until February 2011. Preliminary analysis of the global cotton market indicates the possibility of a record world cotton crop next season of nearly 27.5 M tons. Based upon preliminary assumptions regarding consumption,
this would result in an addition to world stocks of 1.3 M tons. This would be a much needed, though only partial, replenishment of world cotton supply.
Comment (as of 1/15/2011): It is too early to assess the potential loss of the cotton crop from flooding that has affected the state of Queensland in Australia. Any reduction to the supply of top grades would put upward pressure on the market. Also the Indian export debacle continues to unfold causing problems in international trade circles.
*Source: Cotton Outlook (Cotlook Ltd.). Middling 1-3/32”; cheapest 5 of 19 eligible sources. The Cotlook Index reflects both nearby and distant offering rates.
**Source: Cotton Outlook (Cotlook Ltd.).
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