Argentina set to import 35000tons of cotton lint in 2006-7
28 Jun '06
3 min read
United States Department of Agriculture (USDA) Foreign Agricultural Service (FAS) announces Argentina Cotton and Products Annual Report 2006:
The Argentine cotton chain is projected to import 35,000 tons of cotton lint in Marketing Year (MY) 2006-2007, the highest level of the past three years, and the second highest level ever.
This is as a result of a shorter than expected 2005-2006 cotton crop and to a continuing strong recovery of the domestic textile industry. Cotton imports in MY 2005-2006 are expected to total about 30,000 tons, valued at approximately US$34 million. During August 2005/March 2006, 28,000 tons were imported.
Most cotton imported is good quality, mostly Strict Low Middling (SLM). Brazilian cotton accounted for 95 percent of Argentine imports in Calendar Year 2005, and 85 percent of what was so far imported in 2006 (through April).
Although local spinners have to pay in advance to import Brazilian cotton, they prefer it due to the lack of contamination, quality, volume, homogeneity, and relatively short transportation time. Some cotton is also imported from Paraguay.
Most local spinners are now in a good financial situation, but they could be encouraged to purchase U.S. product if prices were competitive and credit were available. A local producer of denim will receive in the next few months a total of 640 tons of U.S. lint (SLM quality), which was purchased in late 2005.
This purchaser has already received 60 tons, at an average FOB price of US$1,110 per ton and an average CIF price of US$1,180 per ton. At the moment of purchase, the decision was made based on the suitability of the final cost.
marketing@alchempro.com
