Cotton Bangladesh ::: DTG 2011

Registration opens for ICA's biggest event: 'Hong Kong 2012'

Registration is now open for the International Cotton Association's (ICA) next major event ‘Hong Kong 2012'.

Taking place on 1st and 2nd November in the Hong Kong Convention & Exhibition Centre, the event is expected to attract 1,000+ delegates, making it the ICA's biggest event yet.

“This is the first time we have held our annual trade conference and dinner event outside of the UK,” explains ICA President, Antonio Esteve. “We chose Hong Kong based on industry feedback. We are confident that this new, central location will attract big numbers and provide better scope for delegates to network and do business with a diverse market - one that represents all links in the supply chain.”

In 2010 and 2011, the ICA met industry demand by hosting spin off events in Singapore and Dubai. Both events were a sell-out and reinforced the ICA's decision to host its traditional annual event in Hong Kong.

Hong Kong 2012 has already attracted lots of interest, with 25 cotton companies signed up as sponsors and an influx of registrations from ICA members, who were treated to priority booking and a discounted ticket price.

Antonio adds: “At a time when the trade needs to stick together and stand firm on contract sanctity, we have chosen a very significant theme for Hong Kong 2012 - 'Growing Together'.
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“We are currently working on the event programme, but can confirm that it will focus on the need for the cotton community to be united, with common aims, business objectives and business practices. There will be a selection of topical presentations and plenty of opportunities for delegates to network in the fabulous surroundings of the Hong Kong Convention & Exhibition Centre. We want Hong Kong 2012 to be accessible to all and we hope that you will join us.”
Hong Kong 2012 is open to anyone with an interest in the cotton trade.
For more information and to register online visit: www.ica-hk.org. ¨

ICA launches a new training initiative to help ‘Manage Risk in a Volatile World'

MA new training initiative from the International Cotton Association (ICA) will be launched this summer in Festival City, Dubai from 29-30 August 2012.

Developed in response to industry feedback, this one-and-a-half-day course will be delivered by industry expert, Peter Egli (Director of Risk Management at Plexus Cotton Ltd). The training will focus on key areas of risk management for the cotton trade - from gaining a deeper understanding of how 'Futures and Options' work to developing trading plans and strategies. Speaking in advance of the training, Peter Egli explains: “I believe that the volatility we have seen in the cotton market since 2008 is here to stay and will probably become even more pronounced over the coming years. In order to survive in such an environment, the cotton community needs to gain a better understanding of the risks they are dealing with and how to mitigate them with the help of Futures and Options strategies.”

The training incorporates five modules: Futures & Options, Global Economy, Currencies, Technical Analysis and Trading Plan & Techniques. Participants will ideally have completed the ICA's 'Complete Cotton' training programme or have a basic knowledge of the course modules. ¨

Government Policies Affect Global Cotton Trade and Prices in 2011/12

The Secretariat of the ICAC presented a report on the impacts of price volatility during the 70th Plenary Meeting of the Committee in Buenos Aires, Argentina. The report indicates that world cotton production is expected to continue to rise in 2011/12 for the second consecutive season to 26.9 million tons (+8%). Cotton plantings expanded this season as a result of high cotton prices paid to farmers in 2010/11. After a drop in 2010/11 caused by extremely high cotton prices, world cotton mill use is projected to resume slow growth in 2011/12 to 24.7 million tons (+1.5%). Cotton mill use will be facilitated by increased availability of raw material, but the possibility of a double-dip global economic recession could reduce these expectations. Global cotton imports are projected to rebound to 8.1 million tons in 2011/12, fueled by larger crops, higher consumption, and the rebuilding of the Chinese government reserve. As a result of the expected surplus of 2.2 million tons, global world ending stocks could rebound by 24% to 11.2 million tons in 2011/12. The projected rebound in the stocks-to-mill use ratio outside China may result in a decline in the season-average Cotlook A Index in 2011/12. However, it is likely that the season-average A Index will remain above the 10-year average of 60 cents/lb (2000/01 to 2009/10). Cotton price volatility could decline in 2011/12 due to the expected recovery in global cotton stocks, but volatility might still exceed historical averages.

The report summarized strategies and tools governments and the private sector can utilize in managing price risks linked to volatility. Governments have an important role in addressing price risks by assuring transparency in statistics on cotton supply, use and trade; by providing stable policy environments; by working to conclude the Doha Round, thereby strengthening trade rules; and by enabling access to hedging mechanisms for the private sector. All traders have the opportunity to manage price risk, but management requires disciplined analyses and appropriate strategy selection. Risk management is one of the ways to deal with high price volatility and could involve the use of both physical contracts and financial instruments. Hedging is not a guarantee of profits, but is a way to limit risk caused by price volatility. ¨