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◊ Quotation ◊

September 7, 2018

U.S. Futures Daily Cotton Market - 6th September, 2018

Contract	Open *	High	Low	Close *	Settle	Change
Oct '18	81.60	81.97	81.60	81.97	81.38	-0.33
Dec '18	81.60	82.07	81.22	81.28	81.30	-0.41
Mar '19	82.00	82.47	81.70	81.70	81.73	-0.38
May '19	82.64	82.64	82.10	82.15	82.10	-0.38
Jul '19	82.72	82.88	82.40	82.44	82.40	-0.43
� Open and Close prices reflect the first and last trade in the market and do not correlate to any opening or closing period �

Cotlook 'A' Index

91.55

(-1.00)

**MARKET OUTLOOK**

India & International Market Highlights:

• Hisar - Sudden wilt in cotton crop coupled with whitefly attack is posing a threat to the crop in certain pockets of the region.

• His entire crop was destroyed by pink bollworm larvae two year ago. But that hasn’t deterred Uday Khachar from growing cotton again. This kharif season, he has planted it on 20 out of his 24 hectares of arable land in Panchavada village in Chotila taluka of Gujarat’s Surendranagar district.

North Zone:
Cotton traded steady tone across major spot markets of north India on Friday. Prices were up Rs 10-20 per maund. In Punjab, ready delivery cotton traded at Rs 4,760-4,780 a maund. In Haryana, it offered at Rs 4,740-4,760 while in Rajasthan, ready delivery quoted at Rs 4,720-4,760 a maund.

Central Zone:

Cotton spot prices steady tone across west India market on Friday. Gujarat Sankar-6, A-Grade new crop (29 mm, 3.8 mic) cotton traded at Rs 48300-48800 per candy. while B-Grade crop cotton traded (28.5 mm) flat at Rs 47800-48300 per candy. V 797 cotton offered at Rs 32300-34300 a candy. While in Maharashtra, mech-1 super quality new crop quoted at Rs 47300-47800 a candy.

South Zone:

Cotton spot price was steady tone across the major trading centers of south India.

US Cotton Futures :

Cotton futures were mostly 33 to 43 points lower in the nearby contracts on Thursday. The weekly Cotton on Call report showed mills had an unfixed call sales position of 38,974 contracts for December on August 31. That was up 66 contracts from the week prior. The weekly Export Sales report will be delayed until Friday. The Cotlook A index was down 40 points from the previous day at 92.55 cents/lb on September 5. The USDA weekly AWP was updated on Thursday afternoon to 73.77 cents/lb. That was down 49 points from the week prior and is good through next Thursday. China sold 16,588 MT of cotton from states reserves on Thursday, 55.28% of the total offered.Oct 18 Cotton closed at 81.380, down 33 points,Dec 18 Cotton closed at 81.300, down 41 pointsMar 19 Cotton closed at 81.730, down 38 points.

Pakistan :

Commodities: Bullish trend on cotton market: September 07, 2018 - KARACHI: Cotton prices rose on sustained buying from mills and exporters on Thursday amid improved availability of quality lint owing to smooth phutti (seed-cotton) arrivals. Increased supplies from two more Sindh stations — Khairpur and Nawabshah — helped buyers, mostly Punjab-based textile mills, to take advantage of grabbing quality lots. Punjab cotton has yet to attain maturity, thus faces some quality issues. There has been no major negative development except the initial setback in Sindh where cotton sowing was affected by shortage of irrigation water. The private sector is estimating the crop size at 12 million bales. The phutti prices also remained stable, with the Sindh variety being quoted at Rs3,700-3,800 and Punjab at Rs3,500-3,700 per 40 kg. Balochistan phutti was traded between Rs3,800-3,900 per 40kg. New York cotton closed lowered and Chinese market registered a slight increase in prices. The Karachi Cotton Association (KCA) revised its spot rates upward by Rs100 to Rs8,150 per maund. Trading on the ready counter was brisk as leading spinners remained in the forefront. The following major deals were reported to have changed hands on the ready counter: 2,200 bales, Shahdadpur, at Rs8,100 to Rs8,150; 2,400 bales, Tando Adam, Rs8,125; 2,000 bales, Sanghar, Rs8,100 to Rs8,150; 1,200 bales, Mirpurkhas, Rs8,100 to Rs8,150; 1,000 bales, Shahpur Chakar, Rs8,125 to Rs8,150; 1,000 bales, Khairpur, Rs8,150; 400 bales, Mian Channu, Rs8,175 to Rs8,325;1,600 bales, Haroonabad, Rs8,225 to Rs8,300; 1,000 bales, Vehari, Rs8,225 to Rs8,275 and 1,000 bales, from Burewala, done at Rs8,250.

China :

In China, CZCE Jan futures settled -25 yuan/ton to 16,655 with the last trade -65 yuan/ton to 16,615. Total volume was 345,614 contracts and Total Open Interest +23,888 to 767,366. In the US arbitrage session, Jan futures slide another 45 yuan/ton to 16,610 on volume of 93,120 contracts. China’s Reserve take up was lower today after offering 30,006.92 tons and selling 16,587.71 for a take-up of 55.28%. The average price was 15,082 +68 from yesterday. Total sales to date are up to 2,207,794.23 tons, or approx. 10,138,191 480-lbs bales equivalents. If we assume the Reserve started this auction series at approx. 5,255,857.47 tons, the remaining stock is now approximately 3,048,063.24 tons.

Yarn Prices as on 7th September, 2018:	Prices FOB Indian Port
	LC at Sight:
Ne 20/1 Carded Hosiery Yarn	USD 2.68/Kg.
Ne 20/1 Combed Hosiery Yarn	USD 2.98/Kg.
Ne 21/1 Carded Weaving Yarn	USD 2.65/Kg.
Ne 26/1 Combed Hosiery Yarn	USD 3.10/Kg.
Ne 30/1 Carded Hosiery Yarn	USD 2.90/Kg.
Ne 30/1 Combed Hosiery Yarn	USD 3.20/Kg.
Ne 32/1 Carded Weaving Yarn	USD 2.95/Kg.
Ne 34/1 Combed Hosiery Yarn	USD 3.33/Kg.
Ne 40/1 Combed Hosiery Yarn	USD 3.45/Kg.
Ne 40/1 Carded Weaving Yarn	USD 3.13/Kg.

Ne 30/2 Carded Hosiery Yarn	USD 3.35/Kg.
Ne 32/2 Combed Knitting Yarn	USD 3.58/Kg.
Ne 32/2 Carded Hosiery Yarn	USD 3.40/Kg.
Ne 40/2 Combed Hosiery Yarn	USD 4.04/Kg.

Ne 30/1 Combed Compact Weaving Yarn	USD 3.28/Kg.
Ne 40/1 Combed Compact Weaving Yarn	USD 3.55/Kg.
Ne 50/1 Combed Compact Weaving Yarn	USD 4.10/Kg.

Ne 16/1 Open End Yarn	USD 2.12/Kg.
Ne 21/1 Open End Yarn	USD 2.20/Kg.
Ne 24/1 Open End Yarn	USD 2.40/Kg.

Market Arrival & Price of Cotton in Various Regions of India

* Rate (INR) per Maund (1 Maund = 37.324 KG.)

HARYANA (J-34)

PUNJAB (J-34)

	*Rate S/G (Ready)**	Rate R/G* (Ready)
NEW CROP (Ready)	4580	4630
NEW CROP (Full September)	4610	4660
OLD CROP	-	4740-4760
Arrival (Bales)	300

	*Rate S/G (Ready)**	Rate R/G* (Ready)
NEW CROP (Ready)	4580	4630
NEW CROP (Full September)	4610	4660
OLD CROP	-	4750-4770
Arrival (Bales)	500

RAJSTHAN (J-34)

	Rate S/G* (Ready)	Rate R/G* (Ready)
PILIBANGA/SURATGARH	4690	4720
SRI GANGANAGAR	4700	4730
HANUMANGARH	4630	4760
Arrival (Bales)	NIL

** Rate (INR) per Candy (1 Candy = 355.6188 KG.)

MAHARASHTRA

MADHYA PRADESH

	Rate(Ready)**	Estimated Length HVI
MECH-1	47000-47800	29 mm
MECH-1	47800-48300	30 mm
MECH-1	49000-49500	31 mm
Arrival (Bales)	500

	Rate(Ready)**	Estimated Length HVI
MECH-1	47000-47800	29 mm
MECH-1	47800-48300	30 mm
DCH-32	55500-62500	33-35 mm
Arrival (Bales)	NIL

GUJARAT

TELANGANA / ANDHRA PRADESH

	Rate(Ready)**	Estimated Length HVI
V-797 (Kalayan)	32300-34300	22 mm
SHANKAR-6	47800-48300	28.5 mm
SHANKAR-6	48300-48800	29 mm (A-Grade)
Arrival (Bales)	500

	Rate(Ready)**	Estimated Length HVI
MECH-1 (Adilabad)	47300-48300	29-30 mm
Bunny / Brahma (Warangal)	47300-48300	29-30 mm
MCU-5 (Guntur)	47300-49300	29-31 mm
Arrival (Bales)	NIL

KARNATAKA

	Rate(Ready)**	Estimated Length HVI
MECH-1	47500-48000	29 mm
Bunny / Brahma	48000-48500	30 mm
DCH-32	56000-62500	33-35 mm
Arrival (Bales)	NIL

Total Arrival : 1,8600 Bales

CURRENCY CONVERSION

Major Currencies

PRICE

CHANGE

Indian Rupee

USD/INR

71.7050

-0.2330

COTTON & TEXTILES NEWS :

Gujarat’s cotton farmers ward off pink bollworm: September 6, 2018 - His entire crop was destroyed by pink bollworm larvae two year ago. But that hasn’t deterred Uday Khachar from growing cotton again. This kharif season, he has planted it on 20 out of his 24 hectares of arable land in Panchavada village in Chotila taluka of Gujarat’s Surendranagar district. And the dull white larva with a pink banding on its upper side, which chews through the lint to feed on the seeds of the raw cotton or kapas, is the least of his concerns. “The insect attacked my crop first in 2015, but caused massive damage only the following year. But in 2017, there was no problem. This year, too, there has been no attack so far. Even if it happens, I should be able to control it by spraying insecticides available in the market. This looks to be one of the best crops I have had in recent years,” says the 40-year-old, Class X-pass farmer. Khachar’s main worry is water. “I could sow after mid-June, as there was water that could be drawn from my three bore-wells. But the lack of rains has meant that my five open wells are not sufficiently recharged. The crop needs water now, when it has entered the flowering stage and boll formation, too, is taking place. The skies are overcast, but it is barely drizzling,” he sighs. Ratibhai Patel, who has sown cotton on his entire six-hectare holding on the outskirts of Sayla town in Surendranagar, states that the pink bollworm has already struck, “but I have managed it by spraying three doses of profenophos and cypermethrin insecticides,”. Gujarat is India’s largest cotton producer, accounting for 108 lakh bales (of 170 kg each) out of the total 365 lakh bales of lint output in 2017-18. Within Gujarat, over 70 per cent of production is from the Saurashtra region. This year, cotton acreage in the state has risen to 27 lakh hectares (lh), compared to 26.17 lh in 2017-18. Of the 27 lh, 19.26 lh has been sown in the 11 districts of Saurashtra: Amreli (4.04 lh), Surendranagar (3.44 lh), Rajkot (2.60 lh), Bhavnagar (2.25 lh), Morbi (2.18 lh), Jamnagar (1.84 lh), Botad (1.66 lh), Junagadh (76,100 hectares), Devbhoomi Dwarka (21,300 hectares), Gir Somnath (18,300 hectares) and Porbandar (10,700 hectares). “After last year’s success in containing pink bollworm, farmers are confident about cotton, proof of which is the higher plantings. Profenophos, triazophos and cypermethrin are not new insecticides, but farmers have figured out how to use them at the right time. Their application can control infestation of up to 90 per cent,” notes Dinesh Pokiya, a farm input dealer in Babra town of Amreli district. However, he warns that spraying of chemicals is not 100 per cent effective, apart from being costly. Farmers should, hence, also try out other options such as placing pheromone and light traps to lure the insect pest. According to LK Dhaduk, head of the Junagadh Cotton Research Station of Junagadh Agricultural University (JAU), pink bollworm was noticed for the first time in Gujarat in Amreli district’s Dhari and Savarkundla talukas during 2013. The larvae caused crop losses to the extent of 80 per cent in 2016. “But thanks to the collective efforts of farmers, seed companies, pesticide manufacturers, traders and scientists, we could control the pest last year,” Dhaduk tells The Indian Express. Gujarat, like other states, mostly grows Bt cotton containing genes of the Bacillus thuringiensis soil bacterium coding for proteins toxic to various bollworms. At the time of its introduction in 2002, the Bt genes were fatal against a host of pests, including American bollworm, pink bollworm and tobacco cutworm. But pink bollworm developed resistance to the Bt toxins from around 2014. “It could have been delayed had farmers planted non-Bt varieties on the edge of Bt cotton fields, which is what Monsanto (the technology developer) had recommended. That would have acted as a refuge crop for the pest. Unfortunately, farmers did not follow the protocols, as yields from the non-Bt plants were lower. As a result, the insect and its progeny fed only on Bt cotton. That hastened the process of resistance to Bt toxins,” explains Dhaduk. Another factor contributing to attacks has been early sowing by farmers. The pink bollworm moths become active with rising humidity levels, and they breed both during May-June and July-August. Early-sown cotton acts as a host for eggs laid by the first-generation moths. These eggs become larva within 4-5 days and subsequently develop into moths within a month. Those moths, in turn, lay eggs again in July-August, leading to a renewed attack on the crop. “If farmers avoid sowing early, their crop can escape the first-generation larval attack. If sowing happens after mid-June, the second-generation larva can be controlled by pesticides. By not spraying these for the first-generation insects, their effectiveness will go up and the overall cost of application also comes down,” observes Dhaduk. The scientist, nevertheless, believes that farmers need to be made to plant refuge crop. This has not been happening, as companies are now putting the non-Bt seeds in a separate small envelope within the main package containing Bt seeds. Therefore, farmers are able to identify the former and not plant them at all. But the government, from the next season onwards, has made it mandatory for companies to mix 24 grams of non-Bt seeds along with 450 grams of Bt seeds. “Farmers will, then, be unable to separate the two and some refuge crop would get planted. Apart from refuge, we need to also promote other means of control such as pheromone traps,” adds Dhaduk. For now, though, farmers are happy, with no signs of serious attack by the dreaded pest. Moreover, the price outlook also seems good. The kapas (raw un-ginned cotton) that has started arriving in the mandis of Punjab is selling at over Rs 5,600 per quintal, which is higher than the government’s minimum support price of Rs 5,150 for medium staple and Rs 5,450 for long staple varieties. With the new cotton year from October projected to open with stocks of just 22 lakh bales, against 36.07 lakh bales in 2017-18, and the benchmark global Cotlook ‘A’ Index price, too, at 92.15 cents per pound — they ruled at 84.70 cents a year ago and around 75 cents two years ago — the coming months promise some hope. Courtesy – The Indian Express

Sudden wilt has cotton farmers worried: Hisar, September 6, 2018 - Sudden wilt in cotton crop coupled with whitefly attack is posing a threat to the crop in certain pockets of the region. However, agriculture scientists said that there was no need to worry as of now. Farmers of Bahbalpur village complaint that cotton crop had started wilting suddenly as full-grown plants had turned pale. The farmers said that the crop had suffered a significant damage due to the phenomenon which they called “ukhera” (when the farmers have to uproot the plants). Radhe Shyam, a farmer who sowed cotton in 10 acres, said that his crop in nearly five acres was completely damaged. “We call it ‘ukhera’ disease as we have no option but to uproot the plants. The crop is at the advanced stage. It is not possible to revive the crop now,” he said, and added that he invested nearly Rs 10,000-12,000 per acre so far. Satpal Singh, another farmer, said the cotton crop in his two acres had suddenly wilted. “It is a big setback at this stage,” he said. Both the farmers have also not covered their crops under the Pradhan Mantri Fasal Bima Yojana. Agriculture Development Officer, Barwala, Dr Rajiv Bhatia said, “The farmers have irrigated the crop as the plants are loaded with flowers and cotton balls. The recent showers and winds have created a situation when the supply of nutrients to the plant has been hampered which causes malnutrition in the plants. Though the whitefly is below threshold level, it is capable of causing damage to the plants. We are closely observing the crop and there is no need to panic.” Dr Dilip Monga, Director, Central Institute for Cotton Research, said that they had also got inputs about the parawilt from isolated pockets in Sirsa district too. “We gave recommendation to the Agriculture Department for advisory to the affected farmers. Our team will also visit the affected areas in next couple of days,” he said. Courtesy – The Tribune

Growers cheer as cotton prices go north on lower stocks, robust exports: AHMEDABAD, SEPTEMBER 5 - Cotton farmers have a reason to smile as the ensuing kharif harvest season is set to begin on a strong price note. Coupled with lower carry-over stock and better export prospects, cotton prices have firmed up in the domestic market. As on Wednesday, prices in the domestic market hovered at around ₹22,349 for a bale (of 170 kg) of cotton. This is more than ₹2,000 higher from ₹20,246 on the same day last year. The buoyancy in cotton prices is primarily driven by higher minimum support prices (MSP) coupled with a strong demand scenario and record low carry-over stock. The International Cotton Advisory Committee (ICAC), in its latest statement, said that the 2018-19 season is likely to see a 3 per cent decrease in production, 3 per cent increase in consumption, and a 10 per cent drop in global stocks. “This will bring the world’s cotton reserves down to a level not seen since the 2011-12 season,” ICAC noted. According to the global apex body, the decrease in stocks world over will largely come from a draw-down in China’s warehouses. Already, the Cotton Association of India (CAI) has projected domestic stocks at the end of the 2017-18 season being at 22 lakh bales, which is said to be the lowest in about a decade. “At about 20-22 lakh bales of carryover stock, India is having its lowest stock in the past decade. The trend is similar globally, resulting in further strengthening of prices,” said Arun Dalal, a leading cotton trader from Ahmedabad.
Spot and future up: The price trend in the spot market and in the futures has already started showing bullish signals. Spot cotton prices for 29 mm Rajkot delivery quoted above ₹22,000 — up ₹2,000 from what was seen around the same time last year. Similarly, on the National Commodity and Derivatives Exchange of India (NCDEX), cotton prices were at ₹23,310 per bale for the October contract. Future prices remained higher by about ₹4,000 per bale from last year’s levels. NCDEX data for the October 2017 contract showed that cotton futures on September 5 traded at ₹19,320 per bale. In the international market, prices quoted lower at 82.22 cents, which is about 2 cents lower than what was seen last month. Courtesy – The Hindu Business Line

Please Inform your Interest.

Regards / Aditya Sekhsaria