×
289
Fashion Jobs
LEVI'S
Group Product Manager
Permanent · Bengaluru
AVENUE SUPERMARTS LIMITED
Excellent Opportunity With Dmart _ Production Managers
Permanent · Chikmagalur
ENOAH I SOLUTION INDIA PRIVATE LIMITED
Area Sales Manager
Permanent · Bengaluru
KISHOR EXPORTS
Garment Technician
Permanent · Agra
KEYAL EMPIRE DESIGN PRIVATE LIMITED
Production Manager
Permanent · DELHI
MAHINDRA HOLIDAYS AND RESORTS INDIA LIMITED
Sales Team Manager/sr . Sales Manager/Territory Sales Manage-Bangalore
Permanent · Bengaluru
SERVOTECH INDIA LIMITED
Sil - Production Manager/ Quality Manager - Tarapur (Boisar)
Permanent · Tarapur
JOB INDIA
Area Sales Manager- Operations (Garment Retails)
Permanent · Gurugram
MAHINDRA HOLIDAYS AND RESORTS INDIA LIMITED
Team Manager/ Territory Manger- Sales- Meerut
Permanent · Meerut
ALGOR SUPPLYCHAIN SOLUTIONS PRIVATE LIMITED
Hiring For Sales Manager in Logistic co| Hyderabad | Bangalore
Permanent · Bengaluru
ELECTRONICA FINANCE LTD
Area Sales Manager - Faridabad Machinery Loan
Permanent · Faridabad
BHARTI AIRTEL LIMITED
Territory Manager- Dth Sales - Khammam_Vizianagram_Hyderabad
Permanent · Khammam
BHARTI AIRTEL LIMITED
Territory Manager- Dth Sales - Nagaur
Permanent · Nagaur
ATOMBERG TECHNOLOGIES PVT LTD
Area Sales Manager - Tirunelveli/Nellai
Permanent · Tirunelveli
HARI DARSHAN SEVASHRAM (P) LTD
Area Sales Manager - Punjab
Permanent · Ludhiana
DIGITAL INDYA
Hiring For Sales Manager
Permanent · Gurugram
VOX BUILDING PRODUCTS PRIVATE LIMITED
i am Looking For Smart Sales Executive/Sales sr Exe/Sales Manager
Permanent · Mysuru
PHARMA PLACEMENTS INC.
Manager Production - Apis & Intermediates
Permanent · Tarapur
FINO PAYMENTS BANK
Territory Sales Manager - Merchant & Distributor Onboarding - Rewari
Permanent · Rewari
BHARTI AIRTEL LIMITED
Territory Manager- Dth Sales - Pondicherry
Permanent · Puducherry
BHARTI AIRTEL LIMITED
Territory Manager- Dth Sales - Nilgiris
Permanent · Ooty
DR LAL PATHLABS
Requirement Territory Manager - Mau
Permanent · Greenville
By
Reuters
Published
Nov 3, 2015
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

ICE world cotton contract debuts with few trades as merchants sit out

By
Reuters
Published
Nov 3, 2015

IntercontinentalExchange Inc's new world cotton contract debuted on Monday with just 21 contracts changing hands, giving merchants, mills and growers their first alternative to pricing on the U.S.-only century-old benchmark.

The world cotton contract for delivery in May 2016 on ICE Futures U.S. settled at 71.23 cents a lb with the equivalent of around 2,400 480-lb bales trading hands. That represented a 7.47 cent premium over the May contract for U.S. cotton.

Cotton Market News


That is tiny compared with the 95,300 bales traded in the May U.S. cotton contract, while 11 million bales traded in the most-active December contract.

The light volume came as the temporary lack of daily price limits coupled with the absence of options trading left several merchants concerned about the risks of trading a contract with low liquidity in its early stages, traders said.

"Everyone's waiting for the other guy to go first," said Ron Lawson, a partner at commodity investment firm Logic Advisors in Sonoma, California.

"When there's a limit to how much you can bleed out, guys will be a little less reluctant to take positions."

The first trade occurred at 11:03 a.m. EST (1603 GMT), around 14 hours after the contract began trading, with five contracts trading hands at a price of 72.27 cents a lb.

Trading opened at 9 p.m. EST on Sunday with a wide bid/ask spread, with traders looking to buy at 69.61 cents a lb and others looking to sell at 74.59 cents a lb.

That spread remained wide for the bulk of the trading session, but narrowed considerably in the final hours of trading, which Lawson said was a somewhat encouraging sign.

The contract had been in the works after years of lobbying from merchants, who said depending on the U.S. contract as a global benchmark meant the price was not representative of world cash prices and left the contract vulnerable to squeezes.

ICE has been actively seeking to garner support from global merchants, millers and bankers for the contract, which will allow delivery of cotton from nine origins and will have global delivery points better suited for customers in Asia's textile industry.

If the contract can continue with relatively little volatility, more commercial players and, ultimately, speculators will begin to participate, said Louis Rose, independent cotton trader and consultant with Risk Analytics in Memphis, Tennessee

"The volume will pick up, but it's not going to be overnight," Rose said.



 

© Thomson Reuters 2021 All rights reserved.