Cotton Market

first_imgAlong with the life-and-death struggle and the rising cases of COVID-19, financial markets worldwide have lurched lower. The selloff of the U.S. stock market started on Feb. 21, 2020. Since then, the great coronavirus crash has been frightening in its speed. Even U.S. Treasury bonds and gold, traditionally a safe harbor in times of crisis, have come under pressure.An investors’ recent pessimism in reaction to coronavirus has induced a business slowdown, the pandemic has cast a shadow on the cotton market as well. May cotton futures for old crops closed at 54.93 cents per pound, and new crop December futures closed at 56.10 cents per pound on March 19.Cotton growers need to be aware of the rising volatility and uncertainties in the cotton market. Since the disease outbreak, the cotton supply chain has been severely interrupted. Countries worldwide are implementing social distancing or lockdown, hoping to slow the spread of the virus. The cotton industry is suffering from the temporary closure of factories to control the virus.Long-term impact from the pandemic is also expected. The aftermath of the coronavirus pandemic is highly likely to result in a global economic slowdown or recession. Cotton products are discretionary items, thus the consumption of cotton goes up or down with the economy. Cotton demands are likely to continue decreasing due to the slowing of the global economy. World cotton demand is currently forecasted at 118 million bales, down 5 million bales from the last peak in 2017.In addition, the U.S. dollar appreciates during the time of crisis as investors seek a safe harbor. This appreciation of the U.S. dollar further hinders export opportunities for cotton. In 2019, 83 percent (16.5 million bales) of cotton produced in the U.S. were exported and traded in the global market. U.S. cotton relies on the global market and international trade to consume excess supply and support domestic prices. The decline in oil prices is likely to increase the competition of synthetic fiber down the road, similar to what we observed after the drop in oil prices during the 2008 financial crisis.Uncertainties in trade make cotton profitability more challenging. The signing of the Phase 1 trade deal between the U.S. and China on Jan. 15 gave the cotton market a short period of optimism. China agreed to purchase at least $40 billion worth of agricultural products for each of the next two years. However, no details have been released so far about how China will be able to fulfill this large purchase of agricultural products. The outbreak of the coronavirus further increased the uncertainty in trade.The U.S. Department of Agriculture Farm Service Agency announces the weekly average adjusted world price (AWP) and loan deficiency payment (LDP) rate every Thursday in the Upland Cotton Announcement. The AWP is currently at 49.95 cents per pound. The LDP rate of 2.05 cents per pound is available from March 20 through March 26. The LDP rate is the difference between the base loan rate of 52.00 cents and the AWP. If taking the LDP, the producer should be aware that there is no further protection from prices going even lower. Producers can wait until March 25 or March 26 to see what the prices hold for next week. If a producer is willing to take the risk and feels that cotton prices are going to improve, then the producer could take the LDP and market the cotton later.Looking ahead, producers need to be aware of the continuous risk of downside price weakness and volatile cotton prices.  It might take a while before we see a recovery of cotton prices. Strategies to improve productivity or cutting costs are highly recommended during a time of low cotton prices.last_img read more

The circular economy in fmcg’s new normal: webinar now available to view on demand

first_img“We should be investing a lot of time in designing those new processes now, with the goal of bringing that to market later,” he added.Having implemented circular economy principles in her business long before the label went mainstream, Tweddle shared tips to doing so successfully.“It’s about having a very clear vision and sharing that vision with your team, and resetting their mindset. That sets you up for the best chance of success. The reality is if you’ve not got that common goal in place, you’re not going to achieve it,” she said.Pascucci said there was right now a “huge opportunity” in circular thinking.“The circular economy is very different from sustainability. It goes directly to the heart of business,” he said.Discussing the topic on webinars such as this one had “real value” said Campbell.“None of us act by ourselves. We are part of a community of businesses and people. We have to do this together and inspire each other,” he said.If you missed the broadcast or want to watch again, click here to register and watch for free. Topics of discussion include why now is the time to consider circular economy operations and how you can put its principles into practiceMaking the circular economy part of fmcg’s new normal, The Grocer’s webinar on how to adopt circular economy principles as part of your post-crisis plan, is now available to watch on demand.While the coronavirus pandemic saw business plans put on hold so immediate operational challenges could be dealt with, the business case for circularity remains as convincing as ever. As the huge upheaval caused by the pandemic becomes more manageable, companies can now turn their focus to how they’ll prosper in the so-called ‘new normal’.First aired on 23 March, the webinar is hosted by our technology editor George Nott and features a panel of experts and industry figures: Yvonne Tweddle, joint MD of Jupiter Group; Mark Campbell, MD of Higgidy; Stefano Pascucci, professor in circular economy at the University of Exeter Business School; and Rob Sinfield, VP of product at Sage.Topics of discussion include why now is the time to consider circular economy operations and how you can put its principles into practice.“It’s terrible times and there’s lot of disruption in the market, but it’s probably one of the best times to be thinking about the circular economy,” said Sinfield. Watch the webinar nowlast_img read more

Megill, Marasco chosen in 2013 MLL Draft

first_imgBrian Megill and JoJo Marasco were both selected in the 2013 Major League Lacrosse Collegiate Draft Friday night.Megill, an Inside Lacrosse preseason first-team All-American defenseman, was the No. 7 overall selection in the first round to the Denver Outlaws. Marasco, a Yorktown Heights, N.Y., native, was a fourth round pick, 37th overall, by the New York Lizards. The midfielder was named a preseason All-American honorable mention by Inside Lacrosse.The two selections were the fewest for Syracuse since Chris Daniello and Cody Jamieson were the lone SU players selected in the 2010 Draft.The Orange is expected to receive large contributions from non-seniors this season, including preseason All-American honorable mentions juniors Derek Maltz and Nicky Galasso. Only seniors are eligible for the MLL Collegiate Draft.Syracuse and its two draftees open the season Feb. 17 against Albany in the Carrier Dome, but preseason action begins Jan. 26 with a doubleheader against Hofstra and Holy Cross.AdvertisementThis is placeholder text Comments Facebook Twitter Google+ Published on January 11, 2013 at 10:53 pm Contact David: [email protected] | @DBWilson2last_img read more