Unicef to launch child rights project in Sindh cotton areas

In an attempt to eliminate child labour and present children with a better future, the United Nations International Children’s Emergency Fund (Unicef) has decided to initiate a child rights project in the cotton farming areas of Khairpur and Ghotki districts in Sindh province of Pakistan.

An Unicef official at the District Commissioner’s office in Ghotki said the main reason behind selecting the two districts for their child rights project was that children of the area are deployed in cotton picking or such other tasks by their parents or other persons due to financial adversities.

The official further informed that Unicef intends to set up temporary schools in the region to impart knowledge to those children who are currently not getting education.

The project would also try to persuade members of union councils in the two districts to admit their children in temporary Unicef schools, he added.

Read entire post Unicef to launch child rights project in Sindh cotton areas @ Fibre2fashion

Cameroon raises cotton price to curb smuggling

In an effort to deter cotton growers from smuggling their harvested crop to neighbouring Nigeria, Cameroon’ state firm SODECOTTON has raised its procurement price of raw cotton from last season’s 200 CFA francs per kg to 255 CFA francs (US$ 0.5) per kg, a rise of 27.5 percent.

SODECOTTON said the move is aimed at discouraging illegal export of raw cotton to bordering Nigeria in expectation of higher returns there.

It said Cameroon farmers illegally exported around 16 percent of their last season’s total production to Nigeria, where they reaped almost double the prices for their produce as compared to domestic market.

The state firm pre-finances the farmers’ by providing them fertilizers, seedlings and other inputs. In exchange, the farmers enter into a contract for selling their produce to the firm.

However, the farmers breached this agreement and preferred to illegally ship out their produce to Nigeria in expectation of better returns, which caused SODECOTTON to incur a loss of around 24 billion CFA francs (US$ 47.37 million) this year.

Read entire post Cameroon raises cotton price to curb smuggling @ Fibre2fashion

Wesley Mancini Rug Collection launched

Wesley Mancini, Ltd., in partnership with Due Process Stable Trading Co., officially unveiled a selection of their new rug design offerings to members of the home furnishings industry at the bi-annual ITMA Showtime Market in High Point, NC on Tuesday, December 6.

With this most recent partnership, Due Process continues its trend to innovate and expand by becoming the first rug company to be accepted into the International Textile Market Association.

Membership with the ITMA will allow Due Process to bring the company's experience and product offerings to a new range of related industries which have never previously included floor coverings in their design catalogs or sales strategies, and help turn area rugs into an integral part of their overall business.

According to David Grasse, President of Due Process, "This partnership is an incredible opportunity for us and our clients. The rug industry is becoming increasingly driven by fashion."

"With fabrics at the forefront of the latest fashion trends, we are excited to be the first and only rug manufacturer to bridge the gap between these two industries in order to bring such desirable designs and patterns from Wesley Mancini to our rug offerings."

Read entire post Wesley Mancini Rug Collection launched @ Fibre2fashion

Samsung Total to set up one million tons PX plant

Samsung Total Petrochemicals will invest US $1.44 billion to set up a greenfield paraxylene (PX) plant at its existing Daesan complex in South Korea.

The new plant which will have a PX capacity of one million metric tons is expected to be begin commercial operations in the third quarter of 2014.

Samsung Total is a joint venture between South Korea based Samsung Group and French chemical major Total Group.

With the addition of new PX capacity in 2014, PX capacity at Samsung Total will touch 1.6 million metric tons.

Read entire post Samsung Total to set up one million tons PX plant @ Fibre2fashion

‘Ensure women’s participation in Pakistan handicrafts’

Stating that women have an important role to play in the country’s development, those participating in the Helping Hand Relief and Development (HHRD) programme laid emphasis on ensuring participation of women in the country’s handicraft industry.

Rural women from across the country participated in the programme and displayed their handicrafts, which greatly interested the people.

HHRD Country Director Fazal Ur Rehman said that in this modern age, it is not possible for any country to attain success and long term development without skill enhancement and technical training.

He added that promotion of technical and vocational skills is vital for sustainable growth of any country, and equally important is to impart skills to people and to motivate them to work and strive for excellence, to set an example for generations to come.

Mr. Rehman said that the programme is aimed at providing skill development training and enhancing the skills of rural women.

Read entire post ‘Ensure women’s participation in Pakistan handicrafts’ @ Fibre2fashion

NTC unveils new logo to revamp image

As a part of its efforts aimed at earning itself a recognition as a world class textile firm, the state-owned National Textile Corporation (NTC) has adopted a new corporate logo that echoes its new image.

Unveiling the new logo, Union Textiles Minister Anand Sharma said the Government is determined to develop NTC as a world class environment-friendly integrated textile firm and a representative and leader of the industry.

The revival-cum-modernisation programme and unveiling of the new corporate logo form a part of these efforts, he said.

He said the current efforts would surely help the Corporation, which is a key textile industry player, to develop into an integrated enterprise with a capacity to satisfy the needs of the nation.

With its highly competitive revitalization strategy, NTC has remarkably emerged as a debt-free firm within just a short period of time, the Minister added.

The Minister also unveiled two refurbished stores of NTC via satellite link up. One of these stores is located in Delhi, while the other one is in Tamil Nadu’s Coimbatore. This forms a part of refurbishing of the Corporation’s 93 outlets which would have the new look of NTC across the country.

Read entire post NTC unveils new logo to revamp image @ Fibre2fashion

‘Christmas mood’ - small gains in NY cotton market

Plexus Cotton Limited reports that New York futures went nowhere this week in thin pre-holiday trading, as March edged up 95 points to close at 87.24 cents.

A look at the daily trading volume says it all, as the highest turnover amounted to just 9'136 contracts. Interestingly though, many of the traders that were active added new bets, because open interest increased by around 4'000 contracts since last Thursday. Obviously there are still some traders seeking protection against further declines, but there are also some new longs entering the market.

The Chinese Reserve continued its support by taking yet another 1.0 million statistical bales of domestic cotton into its stockpile, bringing the total amount to 8.2 million bales, not counting an estimated 4.5 million bales of imports. Many observers now feel that the Reserve will lift as many as 18.0 million bales of domestic and imported cotton off the market, which would be more than the global production surplus this season.

Read entire post ‘Christmas mood’ - small gains in NY cotton market @ Fibre2fashion

Low import duty hits Himachal silk growers

The Central Government’s move of reducing import duty on raw silk from 30 percent to 5.15 percent through its 2011-12 Budget has come as a major blow to the sericulture industry of Himachal Pradesh.

The effects of the Central Government’s move were visible in the declining silk cocoon prices, as the autumn crop arrived in the market this year, Himachal Pradesh Minister for Industries Kishan Kapoor said.

He informed that the move has impacted livelihood of more than 9,000 sericulture farmers of Himachal Pradesh, who are directly engaged in cocoon cultivation in the State, particularly in lower hills of Mandi, Hamirpur, Bilaspur, Sirmaur and Kangra districts.

Read entire post Low import duty hits Himachal silk growers @ Fibre2fashion

Chairman APTMA concerned over alarming decline in textile exports

Chairman All Pakistan Textile Mills Association (APTMA) has expressed deep concerns over alarming decline in textile exports during November 2011 due to energy shortage and high interest rate.

He said the five major sectors of textile industry, including cotton yarn, cotton cloth, knitwear, bed wear and towel have registered steep fall in quantity terms during November 2011.

Chairman APTMA said the textile exports of cotton yarn have declined by 11 percent in November 2011 against corresponding period, followed by 22 percent drop in cotton cloth, 38 percent in knitwear, 40 percent bed wear and 20 percent in towel in quantity terms.

He said the decline is worsening with every passing month since the start of new fiscal year, which means there is less production for exports in the country due to obvious reasons.

According to him, the APTMA has been crying over the situation since day one and the latest report of the SBP annual report has corroborated the APTMA concerns.

The SBP annual report has pointed out that the manufacturing sector has suffered a serious setback. The industrial growth was negative 0.1 percent in financial 2011 due to prolonged power outages and reduction in gas supplies.

Read entire post Chairman APTMA concerned over alarming decline in textile exports @ Fibre2fashion

Woolmark launches 'Wool Celebration' campaign to throw light on wool benefits

Welcome winters this year with the ‘Wool Celebration’ campaign by Woolmark, subsidiary of Australian Wool Innovation Limited. This is a unique initiative by Woolmark, a not-for-profit company owned by 30,000 Australian woolgrowers to educate Indian consumers about the benefits of wool and the various attributes of Merino, world’s finest wool fabric.

‘Wool Celebration’ will be celebrated in the shopping malls across North India where leading brands and retailers offer quality woolen products.

The major brands closely associated with the initiative including Raymond, Monte Carlo, Reid & Taylor, Park Avenue, Gadoni of Italy, ColorPlus and Shingora among others will play a vital role in conveying the message to consumers via in- store promotions. Exciting events, games and fun activities will be organized in & around the malls to mark the celebrations.

Expressing his excitement on introducing this campaign to India, Mr. Amir Sheikh, Country Manager, India says “Wool is a premium fibre and products made of wool should have consumers’ full confidence. The campaign is an attempt by Woolmark Services India Private Limited, a subsidiary of Australian Wool Innovation, to educate Indian consumers about fine wool. We want Indian consumers to fall in love with wool all over yet again.”

He further adds, “Wool is not just a functional requirement but is becoming a fashion prerequisite of Indian consumers. The growing consumer demand for premium and differentiated products make it imminent to educate Indian consumers about versatility of wool and help them to buy best natural product.

Read entire post Woolmark launches 'Wool Celebration' campaign to throw light on wool benefits @ Fibre2fashion

China to assist African nations on cotton production

China will be extending technical and financial support for cotton production over next few years to four leading African cotton producing countries (C4), namely, Burkina Faso, Mali, Benin and Chad.

The joint programme was announced by Chinese Commerce Minister Chen Deming and Ministers or representatives of the C4 countries.

Technical assistance in researches, sponsorship for training projects, technology transfer, experience sharing, and provision of seeds, fertilizers, pesticides and agricultural machinery would all form a part of the two-way support programme.

Mr. Chen said some of the Chinese apparel and textile industries may shift to Africa in due course of time, and added that some such instances of relocation are visible at present.

Read entire post China to assist African nations on cotton production @ Fibre2fashion

Pleasing sales in Aussie wool market

Australian Wool Industries Secretariat Inc (AWIS) releases wool sale report for the week ending 16th December 2011.

The Australian Wool Exchange (AWEX) Regional Indicators finished 2.2% higher, on average, in Sydney, Melbourne and Fremantle this week when the US exchange rate fell by 3.6%. These were the last sales prior to the three week Christmas break.

The market stated slowly on Tuesday, but gained strong momentum on Wednesday after reports of sales to China, and later sales in Europe. The upward movement continued on Thursday, when only the South sold. It was a pleasing finish prior to the three week Christmas break. The fall in the US exchange rate was helpful in a week of low global economic confidence.

The Eastern Market Indicator (EMI) has finished the first half of the season at 1189¢, 158¢ higher than in the same week last year. The season average of 1233¢ is 302¢ higher than the season average at the end of Week 24 last year.

The bigger rise in the Western Indicator was associated with increases of 36¢ and 53¢, respectively in the 18.0 and 18.5 AWEX Micron Price Guide (MPGs) in Fremantle on Tuesday.

Read entire post Pleasing sales in Aussie wool market @ Fibre2fashion

WA growers to benefit from new Spearwood wool store

Elders Limited has welcomed the announcement by AWH Pty Ltd to relocate to a modern warehousing facility within the Spearwood Distribution Park in mid-2012.

Elders Zone General Manager – West, James Cornish said West Australian wool growers will benefit from Elders and the selling centre moving into the new facility, just 200m from the current location.

“Having our show floor, selling centre and offices all in the same building will provide efficiencies for wool growers and all who use the facility,” he said.

The new wool store and selling centre has state of the art unloading facilities and is designed to have a quick turnaround for unloading of both large and small trucks and facilities for clients to inspect their wool alongside representatives from global wool buyers.

“Elders looks forward to meeting our clients at the new facility in 2012 and providing them with the opportunity to see first hand this latest investment in the WA wool industry,” James saiid.

“The wool industry has changed significantly over recent decades and the move to a modern and consolidated facility is a sign that wool handlers and brokers are adapting to grower requirements,” he said.

Read entire post WA growers to benefit from new Spearwood wool store @ Fibre2fashion

Teijin begins recovery efforts at polyester units

Teijin Limited announced that efforts to restore operations have begun at three facilities in Thailand, where operations have been suspended due to flooding since October.

The facilities are Teijin Polyester (Thailand) Limited in Pathum Thani Province, Teijin (Thailand) Limited in the Bang Pa-in Industrial Estate and Teijin Cord (Thailand) Co., Ltd. in the Rojana Industrial Park, the latter two both located in Ayutthaya Province.

Efforts to identify the level of damage to facilities and equipment are underway, following the complete removal of floodwaters from the facilities in the end of November. Teijin plans to increase the number of technical staff dispatched from Japan to support the earliest possible resumption of operations.

To minimize the impact on supply chains and deliveries, which vary by customer and product, Teijin has shifted fiber production to other plants outside Thailand, including Teijin Fibers’ Matsuyama Plant in Japan, Tifico Fiber Indonesia Tbk in Indonesia and manufacturers in Taiwan.

Although Teijin personnel have been affected by the flooding, no casualty has been reported among group employees or their families.

If Teijin concludes that group performance is expected to experience a significant impact due to the effects of the flooding, relevant information will be disclosed immediately.

Teijin is a global technology-driven group operating in eight main fields: aramid fibers, carbon fibers & composites, polyester fibers, plastics, films, medical & pharmaceuticals, fiber products marketing and IT businesses.

Read more about Teijin begins recovery efforts at polyester units @ Fibre2fashion

Cotton Fabric Cleans Itself When Exposed to Ordinary Sunlight

Washington, Dec 15 (IANS) Scientists from China are developing a cotton fabric that can clean itself of stains and bugs when exposed to ordinary sunlight.

Environmental researchers Mingce Long and Deyong Wu, from Shanghai Jiao Tong University and Hubei University for Nationalities, China, say their fabric uses a coating made from a compound of titanium dioxide, the white material used in white paint, foods and sunscreen lotions.

Titanium dioxide breaks down dirt and kills microbes when exposed to some type of light. It is used in self-cleaning windows, kitchen and bathroom tiles, odour-free socks and other products, the journal Applied Materials & Interfaces reported.

Self-cleaning cotton fabrics have been made in the past, but they self-clean thoroughly only when exposed to ultraviolet rays.

A new cotton fabric has been developed that cleans itself when exposed to ordinary sunlight, said a statement of the American Chemical Society.

Their report describes cotton fabric coated with nanoparticles made from a compound of titanium dioxide and nitrogen, said the statement.

The report shows how the fabric coated with the material removes an orange dye stain when exposed to sunlight. Dispersing the nanoparticles composed of silver and iodine accelerates the discoloration process. The coating remains intact after washing and drying.

View more Textile News at Fibre2fashion

‘We specialize in tailor-made solutions’ – Parth, KB Corp

“Share your idea of any textile equipment or machine with us and our excellent R&D team will design and deliver a tailor-made solution”, says a confident Parth Panchal. Parth aged 29, is Director (Sales) and also overlooks export sales of KB Corporation, a textile machinery and equipment manufacturer.

KB Corporation established in 1967 by Mr JR Panchal, offers complete range of dyeing to drying machines in batch/continuous form. It also has in its product portfolio, size preparation equipments and colour kitchen equipments for denim production. It also specializes in delivering tailor-made solutions for the wet processing & finishing industry.

The major product mix of KB Corporation includes, Cabinet Yarn Dyeing Machine, Continues Yarn Dryers, Hydro extractor, Continuous Dryer, Size Preparation Vessels, Size Storage Vessels, Braiding Machines, etc.

Ahmedabad based, KB Corporation was one of the early pioneers of open-width machines in the mid-1970s, when the technology at that time in use was, rope dyeing and bleaching. It has a modern machinery production plant and is also in the process of setting up a new plant nearby Ahmedabad.

Within India, KB Corporation supplies to prestigious textile majors like Arvind, Raymond, Soma Textiles, Ashima Syntex, Reliance Industries, Asarwa Mills, etc.

Read entire post ‘We specialize in tailor-made solutions’ – Parth, KB Corp @ Fibre2fashion

Impact of Thai Floods on Toray’s Operations

Toray Industries Inc. announced the latest situation regarding the impact of the large-scale floods in Thailand on Toray Group’s operations, the details of which are described below.

Damage Status
Ayutthaya Plant of Thai Toray Synthetics Co., Ltd. (TTS), which halted operations on the evening of October 6, began its restoration works on November 28 and is expected to restart from the end of March 2012.

TTS’s Bangkok Plant, which also halted operations on October 26 as areas near the plant got inundated (no flooding in the plant), began its restoration works on November 17 and has resumed production on December 1.

The plants of Thai Toray Textile Mills (TTTM) and TTS in Nakhon Pathom, wihch also suspended their operations for a similar reason by November 1 (partially flooded), have resumed production at TTTM on November 21 and TTS on December 4.

There has been no material or personnel damage due to the floods at Toray group companies or plants other than at Ayutthaya Plant and Nakhon Pathom Plant of TTS.

All the employees on dispatch from Toray to Thailand who had temporarily returned to Japan are back in Thailand by November 17.

Their families are also in the process of returning.

Impact on Fiber Product (Yarns) Supply
Toray has been earnestly responding to the impact on fiber product (yarn) supply following the closedown of the above plants by increasing production at group companies and replacing the products with other types of products. At the same time, the company expects only a minimal impact on supply in the Japanese market, partly because of the small volume of yarn exports from TTS to the Japanese market.

Read entire post Impact of Thai Floods on Toray’s Operations @ Fibre2fashion

In January 2012 - New LYCRA fibre technology to be launched

INVISTA, one of the world's largest integrated producers of polymers and fibres, will announce a cutting-edge advancement in LYCRA fibre technology in Paris in January. The innovation, called LYCRA fibre with W Technology, is designed to offer the European fabric industry a new level of performance in an elastane fibre for intimate apparel, offering improved whiteness retention, uniformity and brilliant colour clarity for fabrics and garments.

For the intimate apparel industry, this technology will enhance styling flexibility with increased confidence, and will be the foundation for both whites and fashion colours. It will be ideal for both warp and circular knit fabrics, delivering visible improvements and allowing robust mill processing.
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“This new product will provide a solution for more attractive garments with higher visual impact, which is especially important for moulded garments,” said Steve Stewart, INVISTA Apparel Global Director of Intimate Apparel & Swimwear. “In a market where excellent whites and fashion colours are a requirement, LYCRA fibre with W Technology will be key to providing customers with quality they can see,” he said.

“It will incorporate new spinning, luster, and dye-uptake technologies to make the fibre the invisible secret that delivers truly visible improvements,” Stewart added.

Read entire post In January 2012 - New LYCRA fibre technology to be launched @ Fibre2fashion

We need to find urgent solution to cotton issue - AProCA

The Doha Round has ten years. Ten years now that what was supposed to make international trade a development tool for all the members of the World Trade Organization and more specifically the poor countries, sounds like a mirage. Ten years
Meetings come one after another and that discussions tall. Ten years of missed appointment and betrayed hopes.

- Gathered in General Assembly December 6, 2011 in Banjul, Republic of the Gambia,
- Recognizing the predominant place of cotton in the economies of cotton-producing countries,
- Recognizing the adverse effects of the subsidies granted by rich countries to their producers in the global cotton market, adversely affecting the development of the African cotton sector and their contribution to national economies,
- Recognizing the bottlenecks in international trade negotiations under the World Trade Organization (WTO) on Doha Round,

We, cotton producers, grouped in the Association of African Cotton Producers (AProCA), are launching urgent appeal to governments and all stakeholders involved in international trade negotiations to a swift conclusion of the Doha Round.

Read entire post We need to find urgent solution to cotton issue - AProCA @ Fibre2fashion

20 years bioRe

The production of fashionable textiles from fair-trade organic cotton through a controlled and transparent process chain. The idealistic project which started in 1991 has long since been transformed into a successful enterprise.

Today, Remei AG is coordinating 48 businesses, which means that we have a responsibility for approximately eighty to a hundred thousand people, above all over 8000 farmers in India and Tanzania. Numerous projects have been completed successfully, such as building some 2560 biogas plants, 2500 fuel-efficient smokeless stoves, 20 village schools, and a training centre in India and one in Tanzania to promote organic cultivation.

It will going to celebrate its 20th jubilee.

All of which stands as proof of the single most important fact – that it is indeed possible to profitably produce and sell cotton while observing the precepts of fairness, ecology, and economy. We have made a lot of improvements – however, one thing remains the same:

Patrick Hohmann, CEO Remei AG: Our vision: Ready to wear fashion, ready to take responsibility.

We would like to thank all our customers, partners and business associates for their belief, idealism and daily commitment to making the success of bioRe possible and we hope for your continuous support.

Read entire post 20 years bioRe @ Fibre2fashion

First International Fair of cotton products starts in Turkmenistan

The first International Fair of domestic cotton products began in Ashgabat, the capital of Turkmenistan.

The fair is intended at generating higher global awareness regarding the country’s accomplishment in agricultural sector, experience sharing with world’s top-most manufacturers and deliberating with foreign firms and enterprises on cooperation issues.

Inaugurating the fair, Turkmen President Gurbanguly Berdimuhamedov highlighted cotton as one of the key export-oriented agricultural product of the country.

He said each year textile industry base of Turkmenistan if further strengthened and several new businesses have been established and projects commissioned during the past few years. As a result, the country is able to gradually enhance its volume of cotton production.

Read entire post First International Fair of cotton products starts in Turkmenistan @ Fibre2fashion

Fourth Silk Mark Expo opens in Chennai

The fourth edition of the Silk Mark Expo organized by the Chennai chapter of Silk Mark Organisation of India (SMOI) opened on December 7 in Chennai.

The aim of the expo is to generate awareness regarding the Silk Mark, a quality assurance label, and to promote the silk industry. The exhibition will continue till December 12.

Several authorised users of the quality mark from 16 States are exhibiting their silk products prepared from Tussar, Muga, Mulberry and Eri varieties of silk through over 60 stalls set up at the Expo, Mr. PM Pandi, Deputy Director (Insp.) and Senior Executive, SMOI Regional Development Office, said.

In a move to generate awareness amongst buyers and to help people learn about genuine silk, a number of contests are being organized during the event whereby people would be asked to identify samples of mixed silk, non-silk and pure silk. Besides, silk testing facilities are also being offered at the Expo, Mr. Pandi said.

Funded by Central Silk Board, Union Ministry of Textiles, SMOI is trying to generate awareness regarding the Silk Mark which is intended to help the customers to identify genuine silk.

Mr. Pandi said SMOI allows the use of Silk Mark on the products of the members only after they have established credentials as producers, retailers and exporters of authenticate silk. Presently, 400 authorised Silk Mark users are registered with the Chennai chapter of SMOI.

Read entire post Fourth Silk Mark Expo opens in Chennai @ Fibre2fashion

Over 600 industrial units shut over gas load shedding in Faisalabad

Annoyed by the abrupt announcement made by the Sui Northern Gas Pipeline Limited (SNGPL) to increase the gas load-shedding from the earlier three days per week to four days a week, several textile industries in Pakistan’s Faisalabad have shutdown.

To protest against the SNGPL’s decision, over 600 industries, majority of them being value-added and export-oriented textile units, have closed. Besides industrialists, the protest is being supported by textile associations.

As claimed by the textile industry of the north zone, a steady rise in load-shedding coupled with low gas pressure is adding to the woes of the entrepreneurs as well as public. Moreover, the daily wage workers associated with the industry now would also have to endure a four-day per week redundancy.

Christmas export orders are very important for textile industry as the EU and the US buyers place bulk orders for made ups, textiles and garments during this period to meet requirements of domestic retailers and other customers who look forward to shop for their winter apparels in the month of December.

Read entire post Over 600 industrial units shut over gas load shedding in Faisalabad @ Fibre2fashion

IFAI Expo Asia 2012 postponed

The Industrial Fabrics Association International announced that due to the uncertainty of the completion of construction at the Suntec Center, and the continuing softness of the global economy, it will postpone its IFAI Expo Asia 2012 trade event originally scheduled for 26-28 June at the Suntec Singapore International Convention and Exhibition Centre.

According to IFAI's conference management vice president Todd Lindemann, "This decision will allow us to evaluate the date and venue for the event. We expect the second edition of IFAI Expo Asia to be bigger and draw larger attendance, and we are carefully planning for that success."

IFAI Expo Asia 2011 had a strong premiere 22-25 March 2011 in Singapore at the Marina Bay Sands Convention Centre. The combined specialty fabrics trade exhibition and symposiums covered the spectrum of the cutting-edge developments occurring in the industry.

Read more about IFAI Expo Asia 2012 postponed @ Fibre2fashion

Quite increase in New York cotton futures

Plexus Cotton Limited reports that NY futures have moved considerably lower since our last report on November 17, with March dropping 518 points to close at 91.30 cents.

The bearish wave, which has been gathering momentum in recent weeks, became potent enough to breach the "Chinese Wall" of support, taking prices to new 14-month lows. The move was all the more impressive since it happened in the face of very strong US export sales, totaling more than 2.5 million statistical bales over a 3-week period. But as the old saying goes - "it's not the news itself that matters, but how the market reacts to the news"!

Interestingly, it was the speculators that were responsible for the selling, as they either bailed out of long positions or added new shorts in reaction to a technical breakdown in cotton and all the uncertainty surrounding the sovereign debt crisis. In the week of November 22, during which the market dropped 10 cents in just three days, large and small speculators sold 11'386 contracts net, while the trade (+10'707 contracts) and index funds (+679 contracts) were net buyers.

Read entire post Quite increase in New York cotton futures @ Fibre2fashion