MARKET OUTLOOK

India: Market is overall steady buyer as well as seller opting for wait and watch policy. ♦ US Cotton Futures: Cotton continued its back and forth trading on Friday night with prices settling up 61 points on May. Prices have alternated higher and lower closes all week long. This is mostly due to the fact that futures have rallied so far so fast and that it was due for some consolidation. This is also evidenced by the fact that the market closed down three points for the week. Notwithstanding this, the underlying bullish currents continue to keep traders nervous regarding near term direction. Technically, the market continues its consolidation as prices finished the week within three points of where it started.  The current consolidation is forming a wedge and a close above 83.40 or below 80.66 will be keys to near term direction.

CNCE settles higher again : 05/03/10  COTTON CHINA : There were 13,740 tons of cotton concluded on CNCE(China National Cotton Exchange's e-market today, 10,880 tonnes more than the previous session. Open interests were 2,780 tonnes less than previous session to 118,480 tons.

Karachi Cotton Association prices : The Karachi Cotton Association on Saturday fixed the official spot rate, or base price, for Grade 3 cotton at 6,055 rupees per maund (40 kg). The Grade 3 cotton has a staple length of 1-1/16" (inches) and micronaire value between 3.8 to 4.9 NCL (no control limits) which represents fine to coarse classes of cotton varieties. In the kerb market the key crop varieties traded in the range of 5,600 to 5,800 rupee per maund. Courtesy – Reuters

COTTON & TEXTILE NEWS

• Cotton Council Intl Supports Discover Natural Fibers Initiative : WASHINGTON, DC – A coalition between Cotton Council International (CCI) and other  international natural fiber organizations recently established the Discover Natural Fibers Initiative (DNFI) to increase awareness of natural fibers, including cotton. The DNFI extends the partnership initiated by the International Year of Natural Fibers (IYNF) Steering Committee organizations following a year of working together in 2009, dubbed the “International Year of Natural Fibers.” “The Discover Natural Fibers Initiative will build on the success of the IYNF and adopt the same objective, which is to raise the awareness and profile of natural fibers, including cotton, and emphasize their value to global consumers while helping to sustain farmer income,” said CCI President Wally Darneille. “Natural fibers, including cotton and U.S. cotton, are key economic contributors. The global recognition this initiative will bring to cotton and other natural fibers is well-deserved.” The decision to continue working closely together was the result of an IYNF committee meeting held in Frankfurt, Germany, in January 2010.Henrik Kuffner, Director General of IWTO, was elected as committee chair for the year 2010. Cotton—a natural, renewable and biodegradable resource—is the largest natural fiber in the global fiber, textile and apparel economy, now representing roughly 80 percent of all natural fibers consumed. Cotton represents hundreds of billions of dollars of economic activity and globally employs hundreds of millions of people from field to fabric to retail.  CCI is the National Cotton Council’s (NCC) Courtesy – CCI

• Coimbatore industries face labour shortage : COIMBATORE: “We have the machines. But do not have the people to operate the machinery,” says Coimbatore District Small Industries' Association President K. Ilango on the increasing labour shortage faced by the industries here. Be it small-scale industries, micro units, engineering or the textile sector here, there is a need for larger workforce as business has bounced back after about two years of economic slowdown. But the industries are finding it difficult to get the manpower needed for operations at the shop floor, material movement, handling the machinery and supervising. The labour shortage has gone up by about 10 per cent during the last one month. Some of the workers who came from North India have gone back home for Holi. “We do not know how many of them will return to work,” says Mr. Ramdass. The problem is likely to be acute in future. As wage costs go up and finding workers gets tougher, organizations will have to realign business models and bring in more automation, he says. During the slowdown, some workers migrated to opportunities in the service sector. Capacities that were added two years ago and commissioned during the slowdown are running to full capacities now and these need additional workers. Further, industries have started buying new machinery now. All these factors create a pressure on labour and wages have also moved up, adds Mr. Ilango. Workers who used to receive Rs. 120 for eight hours work a day now get Rs. 150 to Rs. 170. The textile sector is not only facing labour shortage but is also seeing higher absenteeism and drop-out rates. Workers are attracted towards non-textile opportunities. Hence, it is becoming difficult to find workers though wages have gone up by Rs. 50 to Rs. 70 a day for a worker during the last one year, according to Southern India Mills' Association Chairman J. Thulasidharan. Courtesy – The Hindu

CONTACT US

M. R. TEXTILES

 56, Birch Court, Nirvana Country, South City - 2,

Gurgaon-122018. (HARYANA) INDIA

Phone : 91-124-2218128

Fax: 91-124-4223529

email : info@mrtextiles.info

Visit us at :-  www.mrtextiles.info

Head Office (Gurgaon)

RAHUL MEHTA (Managing Director)

Mobile : 91-9810033714 • Email : rahul.blackberry@mrtextiles.info

Coimbatore Branch

ANI V.D. (Manager - Yarn)

Mobile : 91-9003915512

Email mktg@mrtextiles.info