Exporters
Trade Support Institutions
Policy Makers
Language
EN
FR
ES
Font Size
A
A
A
Cotton Guide
>
Chapter 1
>
The Cotlook Indices
>
The dual system
select
Western and Central Africa
Eastern and Southern Africa
Eastern Europe and Central Asia
Latin America
The Pacific
Arab States
Caribbean
Asia
---------------------------------------------------------------
Afghanistan
Albania
Algeria
Angola
Antigua and Barbuda
Argentina
Armenia
Australia
Austria
Azerbaijan
Bahamas
Bahrain
Bangladesh
Barbados
Belarus
Belgium
Belize
Benin
Bhutan
Bolivia (Plurinational State of)
Bosnia and Herzegovina
Botswana
Brazil
Brunei Darussalam
Bulgaria
Burkina Faso
Burundi
Cambodia
Cameroon
Canada
Cape Verde
Central African Republic
Chad
Chile
China
Colombia
Comoros
Congo
Costa Rica
Côte d'Ivoire
Croatia
Cuba
Cyprus
Czech Republic
Democratic People's Republic of Korea
Democratic Republic of the Congo
Denmark
Djibouti
Dominica
Dominican Republic
Ecuador
Egypt
El Salvador
Equatorial Guinea
Eritrea
Estonia
Ethiopia
Fiji
Finland
France
Gabon
Gambia
Georgia
Germany
Ghana
Greece
Grenada
Guatemala
Guinea
Guinea-Bissau
Guyana
Haiti
Honduras
Hungary
Iceland
India
Indonesia
Iran (Islamic Republic of)
Iraq
Ireland
Israel
Italy
Jamaica
Japan
Jordan
Kazakhstan
Kenya
Kiribati
Kuwait
Kyrgyzstan
Lao People's Democratic Republic
Latvia
Lebanon
Lesotho
Liberia
Libya
Liechtenstein
Lithuania
Luxembourg
Madagascar
Malawi
Malaysia
Maldives
Mali
Malta
Marshall Islands
Mauritania
Mauritius
Mexico
Micronesia (Federated States of)
Mongolia
Montenegro
Morocco
Mozambique
Myanmar
Namibia
Nauru
Nepal
Netherlands
New Zealand
Nicaragua
Niger
Nigeria
Norway
Oman
Pakistan
Palau
Palestine (State of)
Panama
Papua New Guinea
Paraguay
Peru
Philippines
Poland
Portugal
Qatar
Republic of Korea
Republic of Moldova
Romania
Russian Federation
Rwanda
Saint Kitts and Nevis
Saint Lucia
Saint Vincent and the Grenadines
Samoa
Sao Tome and Principe
Saudi Arabia
Senegal
Serbia
Seychelles
Sierra Leone
Singapore
Slovakia
Slovenia
Solomon Islands
Somalia
South Africa
Spain
Sri Lanka
Sudan
Suriname
Swaziland
Sweden
Switzerland
Syrian Arab Republic
Taipei, Chinese
Tajikistan
Thailand
The former Yugoslav Republic of Macedonia
Timor-Leste
Togo
Tonga
Trinidad and Tobago
Tunisia
Turkey
Turkmenistan
Tuvalu
Uganda
Ukraine
United Arab Emirates
United Kingdom
United Republic of Tanzania
Uruguay
USA
Uzbekistan
Vanuatu
Venezuela (Bolivarian Republic of)
Viet Nam
Yemen
Zambia
Zimbabwe
Mission and objectives
How ITC works
Our role in the UN and WTO
Management
Executive Director's corner
Photo gallery: High-level visits
Speeches and statements
Arancha González
Patricia Francis
Jean-Marie Paugam
Ashish Shah
ITC structure
Joint Advisory Group
Impact
Development results
Results by beneficiary group
Policymakers
Trade support institutions
Enterprises
Results by intervention type
Advisory services
Capacity building
Publications
Trade intelligence
How we measure results
Results-based management
Understanding the cost of assistance
Notes on indicators
Evaluation
Client survey
About ITC interactive videos
corporate brochure (pdf)
Priority Countries
Regions
Least Developed Countries
Landlocked Developing Countries
Small Island Developing States
Multi-country projects
AAACP
Cariforum creatives
Project components
Activities highlights
Related links and resources
EnAct (Arab states)
About EnAct
Activities
Components
Enact in the news
Algeria
Egypt
Jordan
Morocco
Tunisia
Videos
NTF II
Bangladesh
Kenya
Senegal
South Africa
Uganda
PACT II (Africa)
About Pact II
Programme strategy
Resources and documents
In the news
Trade and Environment
Sustainable Agriculture and Biodiversity
Climate Change
Greenhouse Gas Mitigation Strategy
Publications
Women and Trade
About us
Strengthening TSIs
Women in coffee
Press Release and Media
Forum connects buyers to women
Women connect to multinationals
Liberia - Interview with Ms.Francis
Interview with ITC on women in trade
Trade finance for women (pdf)
Mobile hand to Liberian women (pdf)
Women, trade and the financial crisis (pdf)
Access to Global Markets
Global Platform for Action on Sourcing from Women Vendors
Peru Alpaca Project
Mexico Jewellery Project (pdf)
ACCESS! for African Businesswomen in International Trade
Trade policy
Enhanced Integrated Framework (pdf)
National Export Strategy Design (pdf)
Resources
ITC Market Access Tools
World Development Report 2012 (pdf)
Events
Government procurement Roundtable
Agenda (pdf)
Concept note (pdf)
Women Vendors Exhibition and Forum (WVEF)
About WVEF 2012
WVEF Programme 2012
WVEF Photo gallery 2012
Buyer Mentor Groups
WVEF 2011
International Women's Day
Expert Roundtable A4T
Export-led poverty reduction
By country
Aid for Trade
Media
Photo Galleries
Regional Reviews
Information Resources
Press Releases
ITC @ 4th Global Review
Millennium Development Goals
Women and Trade Programme
About us
Strengthening TSIs
Women in Coffee
Press Releases and Media
Access to Global Markets
Global Platform for Action on Sourcing from Women Vendors
Peru Alpaca Project
Mexico Jewellery Project (PDF)
Access! for African Businesswomen in International Trade
Trade Policy
Enhanced Integrated Framework (EIF) (PDF)
National Export Strategy Design (PDF)
Resources
ITC Market Access Tools
Events
Women Vendors Exhibition and Forum (WVEF)
About WEVF II
Programme 2012
Buyer Mentor Groups
WVEF 2011
Photo gallery
Poor Communities & Trade Programme
Trade and Environment Programme
Market Access Indicators
Working with ITC
Donor information
Partners
UNCTAD
UNCTAD XIII
WTO
ITC @ 4th Global Review
9th WTO ministerial conference
WTO Public Forum
Rio + 20
Photo gallery
Other partners
Procurement
Procedure for Supplier Registration
UN Supplier Code of Conduct
Zero Tolerance for Gifts/Hospitality
Procurement statistics
Current contracts
Major business opportunity notices
General conditions for contracts and for invitations to bid
Award procedure
Contact and organizational chart
Global compact
General business guide
ITC clients speak
ITC Careers
Current job openings
Working with us
Career options
Professional and Higher Categories
General Service
Temporary Opportunities
Junior Professional Officer Programme
Internship Programme
Consultants
How to apply
Selection process
FAQs
Consultants and Individual Contractors
Internships
Corporate Documents
Annual report
Strategic plan
Consolidated Programme Document (CPD)
Financial reports
Corporate brochure (pdf)
Press
e-Shop
Printed books
Trade statistics CD
Online trade statistics
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
c:\inetpub\wwwroot\www2.intracen.org\wwwpub\widgets\cfgCalendarEvents\views\WebCalendarWithSearch.ascx.cs(885): error CS1061: 'Country' does not contain a definition for 'Name' and no extension method 'Name' accepting a first argument of type 'Country' could be found (are you missing a using directive or an assembly reference?)
Play video
ITC's role in Africa
On-going projects
Header - Cotton [all sub-pages]
Foreword
Cotton Exporter's Guide
Contributors
Introduction
Chapter 1 - The World Cotton Market
1.1-The World Cotton Market-Overview
1.1.1-The World Cotton Market-Production