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Home
Foreword
Contributors
Introduction
Chapter 1
Overview
Production
Production trends
Africa in perspective
Trends in mill use of fibre
Expansion of retail cotton use
Retail cotton consumption
Mill consumption
Inter-fibre competition
Long term projections for textile fibre consumption
Trade
Biotech cotton: world textile trade
Government measures
The importance of cotton in world trade
Cotton Prices
Prices measured at many levels
Influence of time on prices
Influence of location and quality on prices
Cotton and competing crop prices
Structural changes leading to lower prices
Technology
Polyester
Prices of cotton yarn
Retail prices for clothes
Futures markets
The Cotlook Indices
A brief description
Daily quotations
The Cotlook A Index
Transition to an Asian basis
The dual system
Uses of the cotlook indices
Cotton in the Doha Development Agenda
Chapter 2
Impact of varieties and production practices on cotton quality
Varieties
Harvesting
Seed cotton storage and handling
Cotton ginning machinery
Seed cotton unloading
Feed control
Drying
Seed cotton cleaning
Gin stands
Roller-type gins
Lint cleaners
Moisture restoration
Packaging lint cotton
Effect of gin machinery on cotton quality
The impact of cotton fibre properties on textile processing performance, quality and costs
Micronaire
Maturity
Fineness
Length and length uniformity
Strength
Elongation
Colour
Preparation
Neps
Trash (non-lint) content
Wax content
Friction
Ultra-violet fluorescence
Dyeability
Stickiness
Crimp and bulk
Stiffness, elasticity, modulus and work-to-break
Neps and short fibres
Nature of neps and short fibres
Measurement of neps and short fibres
Conclusion
Extraneous contamination in cotton
What is the acceptable contamination level for the end-user of yarn and cloth?
Steps towards minimizing contamination
What proportions of bales from different origins are contaminated?
Fibrous and non-fibrous extraneous contamination in cotton bales
Electronic gadgets in the spinning process for removal of contamination
Effect of the initial level of fibrous contamination and residual level in yarn
Best solution: Solve the contamination problem at the origin
Conclusion
Classing and grading
Cotton classification
Manual grading of cotton
Grade standards
Use of instrumentation in cotton classification
Harmonization of rapid machine testing of fibre quality
Understanding HVI and how to make it serve a global market
Implications for national HVI systems
Conclusion
Cotton bale packaging
Dimensions and density
Bale strapping or banding materials
Bale cover materials
Labelling
Textile processing
Yarn formation
Fabric formation
Chapter 3
Contracts
Standard contractual terms
Main trade (logistical) terms and parties’ obligations
Documentation
Claims
Scope and validity of an offer or bid
Arbitration
General principles and aims of arbitration
Disputes addressed by ICA arbitration
The commencement of arbitration and formalities
Appointment of arbitrators
Conducting the arbitration
The arbitration award
Appeal against an arbitration award
Failure to comply with an award
Promotion of good trading practice
The European Cotton Rules
Documentation (‘back office’)
Letters of credit
The bill of lading
Certificates of origin
Insurance certificates
Other certificates
Missing and incorrect documents
Electronic paperwork
Paperwork-What paperwork?
Why do we need this amount of paper?
How can electronic paperwork assist me?
The electronic revolution
How secure is electronic paperwork?
Freight
Controlling
Pre-shipment
Who appoints the controller?
ICA Rules and Bylaws
Other pre-shipment services
Post-landed weighing
Bale by bale weighing
Weighbridge weighing
Taring
Arbitration sampling, micronaire sampling and sampling for strenght
The role of banks in cotton export finance
Transactional finance
Advance payments or export pre-finance
Advance payment guarantee
Red clause letter of credit
Warehouse receipt systems
What are warehouse receipt systems?
Insurance in an uncertain world
Risk
Indemnity
Utmost good faith
Types of insurance cover to protect your business
When do I become liable? The attachment and termination of risk
Other important considerations
Risk management-A cotton supply chain manager’s perspective
Risk
Risk management framework
Risk governance
Risk measurement
Price charts-Cotlook A Index and New York Cotton Futures
Stress testing
Back testing
Counterparty risk
Operational risk – mapping
Risk culture
Cotton promotion
The importance of cotton promotion
The cost of cotton promotion
Factors that can affect promotion
Annex – ICA model contract
Chapter 4
The role of merchants in cotton exports
The changing role of cotton merchants
Cotton exports and Internet trading
Cotton exports and Internet auctions: a case study
The future
Conclusion
Cotton futures and options – ICE Futures U.S.
Two markets
Price risk
Price quality
Leverage
Organization of a futures market
The former NYBOT and now ICE Futures U.S. cotton marketplace
Cotton forward contracts
Futures and options contracts
The fundamentals of cotton supply and demand
Electronic trading of futures contracts
Other futures markets
Brazil
China
India
Trading in futures
Overview
Technical analysis of futures markets
Hedging and market systems
Risk considerations
Hedging with futures contracts
Hedging with options
Trading physicals at a price to be fixed
Guaranteed minimum price contracts
The purpose
When to use the guaranteed minimum price contract
The advantages of the guaranteed minimum price contract
The disadvantages of the guaranteed minimum price contract
The workings of a guaranteed minimum price contract
How to value insurance premium
A practical example
Conclusion
Chapter 5
Types of cotton
Price differentials
Conventional cotton
Organic cotton
Biotech cotton
Coloured cotton
Extra long staple cotton
ELS cotton production
ELS cotton exports
ELS cotton flourishes in niche markets
Organic cotton: an opportunity for trade
Organic cotton
‘Fair trade’ cotton
Organic and fair trade
The organic cotton market
Geographical markets and large brands
Future development of the market
Chapter 6
Bangladesh
The structure and characteristics of the domestic cotton market
What kind of cotton is supplied from abroad, and from which countries?
Cotton qualities supplied domestically
Specific cotton quality requirements of the domestic textile industry
Cotton import procedures in Bangladesh
Recommendations for LDC cotton exporters on increasing exports to Bangladesh
China
The structure and characteristics of the domestic cotton market: a macro view
Quota system and management of China’s cotton industry
Non-tariff requirements in the domestic market
Expected market developments
The domestic market: a micro view
Possible niche markets and product groups to be targeted
Recommendations for LDC cotton exporters for penetrating the Chinese market
Detailed rules for quota management of cotton imports in China
Chronology of policies and events related to China’s cotton import quota
India
The domestic market
Supply and demand in the national market
Non-tariff requirements in the domestic market
Expected market developments
The domestic market: a micro view
Large national cotton consumers
Possible niche markets and product groups to be targeted
Existing national support schemes
Recommendations for LDC cotton exporters on increasing exports to India
Indonesia
The Indonesian textile industry: a macro view
Supply and demand in the national market
Imports of cotton into Indonesia
Cotton import procedures in Indonesia
Selling practices
Recommendations for LDC cotton exporters on increasing exports to Indonesia
Pakistan
The structure and characteristics of the domestic cotton market
An analysis of the tariff structure of imports
Non-tariff requirements in the domestic market
Expected market developments
The domestic market: a micro view
Preferences of large national cotton consumers
Local spinners’ recommendations on how to penetrate the market
Organic cotton
Recommendations for LDC cotton exporters on increasing exports to Pakistan
South Africa
The structure and characteristics of the domestic market
Tariff structures
Non-tariff requirements in the domestic cotton market
Expected market developments
The domestic market: a micro view
Case studies of large national cotton consumers
Possible niche markets and product groups
Existing national support schemes
Recommendations for LDC cotton exporters
Thailand
The structure and characteristic of the Thai cotton market: a macro view
Tariff and non-tariff requirements in the domestic market
Expected market developments
Case studies of large national cotton consumers
In-depth interviews on penetrating the Thai cotton market
Turkey
The structure and characteristics of the domestic cotton market: a macro view
Analysis of the tariff structure of imports
Non-tariff requirements in the domestic cotton market
Expected market developments: demand and supply forecasts and future market prospects
The domestic market: a micro view
Case study of large national cotton consumers
Possible niche markets and product groups to be targeted
Existing national support schemes that could be utilized to assist cotton-exporting LDCs to penetrate the Turkish market
Recommendations to LDC cotton exporters for promoting exports to Turkey
Classification parameters
Vietnam
The structure and characteristics of the domestic market: a macro view
Market size and consumption pattern
Supply
Imports
Tariff structure of imports
Non-tariff requirements
Exports and imports under sale and purchase contract
Expected market developments
The domestic market: a micro view
Case studies of large national cotton companies
Possible niche markets and product groups to be targeted
Existing national support schemes that could be utilized to assist cotton exporters from least developed countries (LDCs)
Recommendations for cotton exporters from LDCs on increasing exports to Viet Nam
Useful addresses
Bangladesh
China
India
Pakistan
Thailand
Turkey
South Africa
Viet Nam
Acknowledgements
Quick links
Abbreviations
International Cotton Associations
Conversion Factors
Useful websites
Textiles and clothing
A4Trade Global Review: case story
Connecting Industry to the Market
Questionnaire
The Role of Women in Cotton
Scope and validity of an offer or bid
Chapter 3 - Cotton marketing - Scope and validity of an offer or bid
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Introduction
Chapitre 1 - Le marché mondial du coton
Généralités
1.1.1- Production
Comité Consultatif International du Coton (EN)
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Cotton Africa (EN)
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