Palm oil fallsMalaysian palm oil futures reversed early gains on Tuesday as profit-taking and a sharp decline in August exports pulled down prices from record highs scaled last week.The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange closed down 84 ringgit, or 1.9%, at 4,363 ringgit ($1,029.98) a tonne, after rising 1.9% in intraday trade.Prices rose earlier on short-covering due to persistent talks of production losses in both Malaysia and Indonesia, and expectations of lower palm oil carryover stocks for the new season, said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.Anticipation of Indonesia's crude palm oil (CPO) export duties for September rising to $166 per tonne from $93 in August also supported prices as it would benefit Malaysia's exports, Bagani said.Malaysia's palm oil exports during Aug. 1-15 fell between 15% and 24% from the same period in July, cargo surveyors said on Monday."Oil World is expecting crude palm oil prices to weaken by end-Dec 2021 and will continue to see more weakness in 1H22 with the assumption of no weather disruptions," UOB KayHian said in a note.Oil World Executive Director Thomas Mielke forecast Indonesia's free-on-board (FOB) CPO prices to fall to $1,000 a tonne by end-December, and range between $800 and $850 during the first half of next year, UOB said.This is due to expectations of stronger global edible oil supplies in 2021/22 after record high prices last year boosted plantings, and demand rationing due to high prices, UOB said.Mielke pegged world palm oil production to rise by 2.1 million tonnes in 2020/21, and by 3.8 million tonnes next season, but low opening stocks will offset production growth, according to UOB.Dalian's most-active soyoil contract gained 0.6%, while its palm oil contract rose 0.5%. Soyoil prices on the Chicago Board of Trade fell 0.6%.Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Soya firm as crop conditions in focusChicago soybeans edged higher on Tuesday as lower-than-expected US crop ratings underscored mixed growing conditions, while the market awaited results from a Midwest field tour.The most-active the Chicago Board of Trade was CBOT soybeans were up 0.3% at $13.72 a bushel.In a weekly report after Monday's market close, the US Department of Agriculture (USDA) rated 62% of US corn crop good to excellent, down 2 points from a week earlier, and soybeans 57% good to excellent, down 3 points. Traders on average had expected no change.The lower ratings tempered hopes for a boost to crops from rainfall forecast in the coming days."The market is considering downside but not any upside to yields," said Michael Magdovitz, commodity analyst with Rabobank. "The rains have come too little, too late."Initial results from this week's Pro Farmer Midwest Crop Tour projected lower corn yields and soybean pod counts than last year in South Dakota but higher levels in Ohio, supporting expectations of contrasting yields between western and eastern growing belts.Soybeans have also been supported by a run of sales to China.However, monthly US soybean crushing in July, according to National Oilseed Processors Association (NOPA) data released on Monday, was below trade estimates."Consumers are having to make pricing decisions at 50%-60% higher than last year. We're starting to see some demand rationing," Magdovitz said.
Tanzania's cotton production & exports expected to riseEast African country Tanzania is likely to witness an increased cotton production in the coming months due to favourable conditions, increased harvested areas and availability of fertilisers and pesticides for the farmers. This, in turn, is expected to boost cotton exports to western countries under the African Growth and Opportunity Act (AGOA).The increased production in Tanzania may also trigger cotton exports to Asian and European nations such as India, Pakistan, Indonesia, Portugal, France and Netherlands among others.The cotton harvested area of Tanzania was 600,000 hectares in marketing year (MY) 2019-20, which dropped by 25 per cent to 450,000 hectares in MY 2020-21. It is expected to rise again to 600,000 hectares in MY 2021-22The total cotton production of the country dropped by 64.71 per cent from 5,95,000 480 lb bales in MY 2019-20 to 2,10,000 480 lb bales in MY 2020 - 21. The production is expected to shoot up by 185.71 per cent to reach 600,000 480 lb bales in MY 2021-22.The country exported cotton worth $94.92 million in MY 2019-20 and $43.09 million in MY 2020-21. However, due to the anticipated increase in cotton production, the country is likely to export cotton worth $56.02 million in MY 2021-22.
Exporters to get new duty refund scheme this weekThe government is set to notify the new duty refund scheme for exporters — Refund of Duties and Taxes on Exported Products (RoDTEP) — this week, with a final clearance from commerce and industry minister Piyush Goyal expected in a day or two.The scheme, meant to replace World Trade Organization (WTO) non-compliant incentives, was implemented in January but exporters have been waiting to get their dues for taxes paid by them for the last eight months. A notification will partially end the agonising wait, which has increased their fund requirement as the Centre has held back their claims.While commerce secretary B V R Subrahmanyam had said that the scheme will be implemented, some paperwork is yet to be completed after the commerce and finance ministries agreed to widen the scope of the scheme to cover all products, which also required higher budgetary allocation. The two ministries had earlier agreed to increase the allocation from the originally allocated Rs 13,000 crore to Rs 17,000 crore.Last week, the government had notified the Rebate of State and Central Taxes and Levies (RoSCTL) scheme, a similar mechanism, to allow textile exporters to get a rebate on central and state taxes till March 2024.According to industry estimates the government owes around Rs 8,000 crore to exporters in unpaid RoDTEP bills, with another Rs 3,500-4,000 crore arrears on account of RoSCTL. Further, around Rs 16,000 crore of payments from the now defunct Merchandise Exports from India Scheme (MEIS) are due for April-December 2020. So, exporters are demanding payments of close to Rs 28,000 crore just from these three schemes.Exporters have been complaining of the government sitting on tax refunds and arrears from earlier schemes such as Service Exports from India Scheme (SEIS) and MEIS that were abandoned after the US dragged India to the WTO, arguing that they were not compliant with global trade rules.Government sources said refunds could be handy at a time when costs such as those on fuel and freight have gone up due to global as well as domestic price dynamics.SiS Commited to update you on all textile related news real time.
Today evening the rupee strengthened by 1 paise to close at Rs 74.25 against the dollar.Record closing of Sensex, closed higher by 593 pointsToday the stock market closed with a record high. Today, where the Sensex closed at a record level of 55437.29 points with a gain of about 593.31 points. On the other hand, the Nifty closed at a record level of 16529.10 points with a gain of 164.70 points.
Rupee moves flat, breaks 1 paise and opens at 74.27 levelRupee has opened flat against the dollar today. Rupee has opened weak by 1 paise against the dollar today. Rupee opened today at 74.27 against dollar.On the other hand, in Thursday's trade, there was an increase in the rupee against the dollar and it had strengthened by 18 paise and closed at 74.26 level.Due to the corona virus, the demand for crude oil has declined all over the world. On Thursday, there has been a weakness in the price of Brent again. But in India, the customers of petrol and diesel are not getting the benefit of this.
China’s port shutdown raises fears of closures worldwideA Covid outbreak that has partially shut one of the world’s busiest container ports is heightening concerns that the rapid spread of the delta variant will lead to a repeat of last year’s shipping nightmares.The Port of Los Angeles, which saw its volumes dip because of a June Covid outbreak at the Yantian port in China, is bracing for another potential decline because of the latest shutdown at the Ningbo-Zhoushan port in China, a spokesman said. Anton Posner, chief executive officer of supply-chain management company Mercury Resources, said that many companies chartering ships are already adding Covid contract clauses as insurance so they won’t have to pay for stranded ships.It seemed as if things were just starting to calm down, “and we’re now into delta delays,” Emmanouil Xidias, partner at Ifchor North America LLC, said in a phone interview. “You’re going to have a secondary hit.”The shutdown at Ningbo-Zhoushan is raising fears that ports around the world will soon face the same kind of outbreaks and Covid restrictions that slowed the flows of everything from perishable food to electronics last year as the pandemic took hold. Infections are threatening to spread at docks just as the world’s shipping system is already struggling to handle unprecedented demand with economies reopening and manufacturing picking up.Ningbo-Zhoushan Port said in a statement late Thursday that all other terminals aside from Meishan have been operating normally. The port is actively negotiating with shipping companies, directing them to other terminals, and releasing information on a real-time data platform, it said. To minimize the impact, it’s also adjusting the operating time of other terminals to make sure clients can clear their shipment.Flights CanceledA spokesman for the port said there were no further updates when contacted Friday.Ningbo city is still considered a low risk virus area, according to the city’s health commission, although flights to and from the capital Beijing have been canceled.The Baltic Dry Index that serves as a global benchmark for bulk shipping prices is up more than 10% since a month ago as the delta variant began to spread rapidly. While there haven’t been significant effects on U.S. ports, the problems in China could hurt companies that rely on container exports from the nation.
U.S. EXPORT SALES FOR WEEK ENDING 05/08/2021 Cotton: Net sales for 2021/2022, which began August 1, totaled 342,700 RB. Increases primarily for China (123,800 RB), Turkey (72,500 RB), Bangladesh (39,400 RB, including decreases of 200 RB), Pakistan (39,100 RB, including decreases of 700 RB), and Vietnam (30,500 RB, including 300 RB switched from Japan and decreases of 2,300 RB), were offset by reductions for Taiwan (200 RB). For 2022/2023, net sales of 15,300 MT were reported for Mexico (6,500 RB), Turkey (4,400 RB), and South Korea (4,400 RB). A total of 1,310,900 RB in sales were carried over from the 2020/2021 marketing year, which ended July 31. Exports for the period ending July 31 of 49,100 RB brought accumulated exports to 14,882,100 RB, up 5 percent from the prior years’ total of 14,174,500 RB. The destinations were primarily Mexico (10,900 RB), Pakistan (8,000 RB), Turkey (6,700 RB), Vietnam (6,400 RB), and Indonesia (5,900 RB). Exports for August 1-5 totaled 190,600 RB,with Pakistan (38,900 RB), Vietnam (36,500 RB), China (30,100 RB), Turkey (23,700 RB), and Mexico (14,000 RB) being the primary destinations. Net sales of Pima for 2021/2022 totaled 10,200 RB.Increases were primarily for Pakistan (3,400 RB), India (2,600 RB), Honduras (2,200 RB), Egypt (1,300 RB), and Guatemala (400 RB). For 2022/2023, net sales of 99,000 RB were primarily for India (52,100 RB), Peru (11,400 RB), Pakistan (10,100 RB), China (9,500 RB), and Honduras (4,400 RB). A total of 88,800 RB in sales were carried over from the 2020/2021 marketing year, which ended July 31. Exports for the period ending July 31 of 3,100 RB brought accumulated exports to 754,900 RB, up 55 percent from the prior years’ total of 486,600 RB. The destinations were primarily Turkey (1,400 RB), India (500 RB), Bangladesh (400 RB), China (400 RB), and Pakistan (200 RB). Exports for August 1-5 totaled 7,700 RB, with Peru (2,500 RB), India (2,100 RB), Pakistan (1,800 RB), China (700 RB), and Bangladesh (300 RB) being the primary destinations. Exports for Own Account: For 2021/2022, exports for own account total of 4,700 RB were carried over from the 2020/2021 marketing year, which ended July 31. The outstanding balance of 4,700 RB, including carryover, is for China.
Textile industry should use local cotton: governmentThe government on Monday said there is excess availability of local cotton, which the textile and apparel industry should tap into and support farmers hit by a surge in imports.Minister of state for finance Pankaj Chaudhary told Lok Sabha in a written reply to a question that a 5% basic customs duty and a 5% agriculture infrastructure and development cess was imposed on raw cotton in FY22 budget to benefit domestic cotton farmers.Chaudhary said cotton import surged significantly in last few years even though India is the largest producer of cotton in the world.“All varieties of cotton, including those which were produced in India were being imported in large quantities. This has impacted the Indian farmer adversely. Cotton is domestically available in excess of demand. Therefore, the garment industry can source the domestically produced cotton including high quality and extra-long staple cotton," the minister said.Chaudhary also said that reduced import dependence would help the domestic garment industry.The minister acknowledged that trade associations have made representations that difficulties were being faced by textile and apparel industry due to the import duty.Chaudhary argued that garment exporters have various duty-free import schemes and would not be affected by the duty on cotton.The cotton Association of India has sought withdrawal of the 10% duty levied on imports saying the commodity has become costly and it was not in the interest of domestic textile industry, the minister said. “The decision to impose duty on imports of cotton has been taken to benefit domestic cotton farmers which in turn would help in higher domestic value addition and reduce import dependence," the minister said. SiS Commited to update you on all textile related news real time.
U.S. EXPORT SALES FOR WEEK ENDING 29/07/2021 Cotton: Net sales of 17,100 RB for 2020/2021 were up noticeably from the previous week, but down 45 percent from the prior 4-week average. Increases primarily for Mexico (9,300 RB), South Korea (4,200 RB, including decreases of 100 RB), Vietnam (2,800 RB, including 400 RB switched from Japan and decreases of 5,100 RB), China (900 RB), and Bangladesh (700 RB, including 900 switched from Pakistan and decreases of 200 RB), were primarily offset by reductions for Malaysia (600 RB), Japan (300 RB), and El Salvador (300 RB). For 2021/2022, net sales of 149,300 RB primarily for Costa Rica (36,500 RB), Pakistan (35,300 RB), Turkey (35,300 RB), China (15,800 RB), and Thailand (13,300 RB), were offset by reductions for Indonesia (700 RB), Honduras (600 RB), and Guatemala (300 RB). Exports of 229,500 RB were down 4 percent from the previous week and 5 percent from the prior 4-week average. Exports were primarily to Vietnam (42,400 RB), China (35,500 RB), Turkey (34,100 RB), Pakistan (25,000 RB), and Indonesia (17,400 RB). Net sales of Pima totaling 2,400 RB were down 42 percent from the previous week and 49 percent from the prior 4-week average. Increases reported for India (1,700 RB), Peru (400 RB), Colombia (200 RB), Pakistan (100 RB), and Vietnam (100 RB switched from China), were offset by reductions for China (100 RB). For 2021/2022, net sales of 9,100 RB were primarily for China (6,600 RB), India (1,800 RB), Egypt (400 RB), and Guatemala (200 RB). Exports of 8,700 RB were down 7 percent from the previous week and 18 percent from the prior 4-week average. The destinations were primarily to Vietnam (3,000 RB), India (3,000 RB), Austria (800 RB), Brazil (700 RB), and Peru (400 RB). Exports for Own Account: For 2020/2021, the outstanding balance of 4,700 RB is for China.
Today evening, the rupee strengthened by 9 paise to close at Rs 74.18 against the dollar.New record of Sensex and Nifty, know how much increased todayToday the stock market closed with a record high. Today, where the Sensex closed at a level of 54369.77 points with a record rise of 546.41 points. On the other hand, Nifty closed at the level of 16258.80 points with a gain of 128.00 points.
Rupee has started with a strong opening today against the dollar.Rupee is seen at the upper level of June 25 today. Against the dollar, the rupee today opened with the strength of 11 paise at 74.17 against 74.28.The market has grown rapidly.Sensex, Nifty are trading at record highs. The midcap index appears to be at a record high. 35 out of 50 Nifty stocks are seeing gains. On the other hand, 18 out of 30 Sensex stocks are seeing gains.
In a pathbreaking move, govt removes anti anti-dumping duty on Viscose Staple FibreThe government on Monday removed anti-dumping duty on Viscose Staple Fibre (VSF). Union Minister Smriti Irani said the decision was taken after a thorough investigation initiated in February this year. This decision will give fillip to the MMF sector.Irani tweeted, "Pathbreaking decision by GOI to remove Anti-dumping Duty on Viscose Staple Fibre (VSF). Decision taken after thorough investigation initiated in Feb’21 will give fillip to the MMF sector. My best wishes to the Textiles Industry as a new chapter begins in India’s MMF growth story."For the unversed, Viscose staple fibers (VSF) or artificial cotton fibers are natural and biodegradable. These fibers are obtained from wood pulp and cotton pulp, which share the characteristics of cotton fibers. These are versatile and easily bendable fibers and have a wide range of application in apparels, home textiles, home furnishings, dress materials, and woven & knitwear.
Vietnam factory shut down!Affected by the epidemic, 97% of textile companies in South Vietnam have suspended production. Most of the factories have been suspended since midnight on July 15. After being checked and approved by officials of the local disease management bureau, work can only be resumed.Although the export orders of the Vietnamese textile industry have been received in the third quarter, companies are currently struggling to achieve a balance in production activities, ensuring employment of employees, and profits. The demand for brand customers to delay payment by 2 to 3 months, or even 6 months, is also beyond the capacity of enterprises. Moreover, in the face of the huge risks brought by the increasingly complex epidemic, some brand customers have moved their orders out of Vietnam, and even have a tendency to return to the Chinese market.With the bankruptcy of the 3T in-situ principle, more and more companies have already shouldered huge cost burdens and epidemic prevention pressures. As a result, a large number of unemployed people have nowhere to live, and Vietnam's social stability will also face tremendous pressure.
Noida garment exporters demand ban on export of Indian cotton and yarnNoida Apparel Export Cluster (NAEC) has demanded a complete ban on export of Indian cotton and yarn to increase production in the domestic apparel industry, so that the finished products can be exported internationally to generate more revenue.The cluster also said that the ban on export of cotton and yarn will ensure greater availability of raw materials for the apparel industry, which has been sluggish for the past six months due to the Covid-19 induced slowdown, and enable it to compete Is. in the global export market.Lalit Thukral, President, Noida Apparel Export Cluster and Convener of Readymade Garments (RMG), Uttar Pradesh Export Promotion Council, said that the industry is already battling huge losses due to the pandemic and large scale exports of cotton and yarn. It has come as a double blow. It is worth mentioning here that the share of Noida in apparel exports in the last financial year was US$ 3.5 billion.As per the data of the Ministry of Textiles, the country exported around 12 million bales of cotton and yarn in the last two financial years. Data shows that India exported around 5.5 million bales of cotton and yarn to Bangladesh, Vietnam and China in the last fiscal. Of this, 2.197 lakh bales (about 275 million kg) were for China alone.While exports of cotton and yarn generate revenues of around USD 75 billion every year, Thukral said exports of finished garments would increase if exports are banned and more raw materials are made available to the apparel industry. will be generated annually. Revenue of about 40 billion US dollars.He further said that exports were eating into the availability of raw materials for the domestic ready-made garments industry - currently only half of the annual demand of 12 million bales is being met.A Joint Secretary rank official in the Textiles Ministry, on the condition of anonymity, said, “India exported almost 50% of its cotton and yarn to China in the last fiscal. “Our ministry has set a target of USD 400 billion in merchandise exports in the current financial year 2021-22. We will soon ban the export of cotton and yarn as it not only affects employment generation (more raw material will provide direct/indirect employment to at least 9 million more people), but also the growth of garment manufacturers and exporters. also obstructs,"SiS Commited to update you on all textile related news real time.
Cotton Corporation stocks drop down to 9 lakh balesThe Cotton Corporation of India (CCI) has said it has almost exhausted all its existing stocks and is now left with only 9 lakh bales before the start of the next season in October, due to the strong demand for cotton in the market.Pradeep Kumar Agarwal, chairman and managing director of CCI, said the corporation had an opening stock of 115 lakh bales of cotton at the start of the season in October 2020 and had procured 92 lakh bales since then.“International cotton prices and MCX prices have risen by Rs 7,500 and Rs 6,000 a candy, respectively, in the last one-and-a-half months. But CCI has been conservative in increasing prices and has raised prices by Rs 2,200 to Rs 2,500 a candy for the same period, except for one to two varieties, where it is higher,” he said.In the last one month, 40% of the cotton sold by CCI has been purchased by textile mills directly.
Despite a rise in area, cotton yield drops below 500 kg per hectare in IndiaProductivity is low as no new technology has been introduced since 2006, say, industry officials, scientists.Over the last three years, the yield per hectare of Indian cotton has dropped below 500 kg per hectare despite a rise in the area under the fibre crop.‘Yet to feel the pinch’Industry officials, traders and cotton research scientists say India is yet to feel the pinch of the low yield since the textile industry has not been running at capacity since March last year due to the Covid pandemic.Ranks 34 in yieldData show that though India is the largest producer of cotton globally, it ranks 34th in terms of yield, below Vietnam, Pakistan, Ivory Coast, Ethiopia and Myanmar.Australia tops the list, getting 2,0171 kg of cotton per hectare, followed by China (1,879 kg), Brazil (1,803 kg) and Turkey (1,645 kg), respectively. “We got the best out of the genetically-modified cotton during 2013-14, but after that yield has stagnated.Technology licence“Each one in the textile industry will stand to gain if cotton yield increases to at least 600 kg. Farmers will get higher returns, industry will get cotton at a competitive price and in turn, textile products will be competitive in the global market,” said a textile industry official.Pink bollworm menace“The Bollgard II technology had a big impact, particularly in tackling the pink bollworm until 2015-16. After than the technology lost its potency and the pest developed resistance. Now, farmers have to resort to spraying pesticide to tackle the bollworm and, in a way, this has resulted in productivity dropping,” said Ramasami.Maharashtra’s case“At least 20 lakh hectares in Maharashtra have been brought under the unauthorised HTBt (Herbicide tolerant Bt) cotton. This is fine for short-term but in the longer run, we need standard companies to produce the seeds to protect farmers from any harm such as adulterated or spurious seeds,” said scientist Mayee.
Ministry of Textiles21.97 lakh Bales of Cotton exported from India to China out of the total exports of 54.83 lakh Bales,275 million kg of Cotton Yarn also exported to China out of the total exports of 980 million kg.The export of cotton and yarn from India to China has not stopped due to COVID-19 pandemic. During current cotton season 2020-21 (October 2020 to September 2021) as on April 2021, 21.97 lakh bales of cotton were exported from India to China out of the total exports of 54.83 lakh bales. China was the second largest importer of cotton from India after Bangladesh. Regarding export of yarn, during the year 2020-21 from Apr, 2020 to Mar, 2021, 275 million kg of cotton yarn were exported from India to China out of the total exports of 980 million kg. China was the largest importer of yarn from India. The country-wise data on export of cotton and cotton yarn of 2020-21 is annexed.
U.S. EXPORT SALES FOR WEEK ENDING 22/07/2021 Cotton: Net sales reductions of 1,200 RB for 2020/2021--a marketing-year low were--down noticeably from the previous week and from the prior 4-week average. Increases reported for Mexico (2,400 RB), Pakistan (900 RB), Peru (500 RB), South Korea (400 RB), and Egypt (100 RB), were more than offset by reductions for Indonesia (2,200 RB), Vietnam (2,000 RB), China (900 RB), and Japan (400 RB). For 2021/2022, net sales of 192,200 RB primarily for Bangladesh (55,000 RB), Mexico (39,600 RB), Pakistan (33,700 RB), Vietnam (25,300 RB), and Turkey (14,300 RB), were offset by reductions for Guatemala (200 RB). Exports of 238,300 RB were down 3 percent from the previous week and 5 percent from the prior 4-week average. Exports were primarily to Turkey (54,200 RB), Pakistan (48,800 RB), Vietnam (29,300 RB), China (27,500 RB), and Indonesia (18,500 RB). Net sales of Pima totaling 4,200 RB were up 22 percent from the previous week, but down 2 percent from the prior 4-week average. Increases were primarily for Peru (2,300 RB) and India (900 RB). For 2021/2022, net sales of 200 RB were reported for Thailand (100 RB) and Japan (100 RB). Exports of 9,300 RB were down 10 percent from the previous week and 14 percent from the prior 4-week average. The destinations were primarily to India (6,300 RB), Peru (1,500 RB), China (700 RB), Germany (400 RB), and Pakistan (200 RB). Exports for Own Account: For 2020/2021, the current exports for own account totaling 1,000 RB to Vietnam were applied to new or outstanding sales. The outstanding balance of 4,700 RB is for China.Export Adjustments: Accumulated exports of upland cotton to Thailand were adjusted down 352 RB for week ending July 15th. This shipment was reported in error.
China cotton lint imports up 146 per centChina’s imports of cotton linter in the first half of 2021 were up 146 per cent year on year. As per a CCF Group report imports in the first and second quarter of 2021 were up 56 per cent and 262 per cent year on year. In the first half of 2021, imports from India, Turkey and the US were up 550 per cent, 548 per cent and 34 per cent.In the first half of 2021, cotton linter import price fell to a 15-year low. The price of Indian linter is 3.5 per cent lower than the average while that of US linter is 33 per cent higher than the average. The cotton linter import price in June 2021 was up two per cent year on year. The price of Turkish linter is 11 per cent lower than the average while that of Indian and US linter is 12.8 per cent and 27 per cent higher than the average.China’s consumption of cotton linter for staple-grade CLP has increased substantially this year, so have cotton linter imports from India, Turkey and Brazil in the first half of the year. Adding the US, imports from these four countries account for about 95 per cent of total Chinese imports.