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Tender Win

NW have been selected in July 2012 as a preferred linen supplier to the NSW hospital.

This is a great achievement due to our commitment in quality and price.

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We have 100% J-Spun Damask Featherleaf design back in our stock inventory  

News

29 Oct 2014

TRLA SA conference

21 Jun 2012

Clouds loom over cotton price

 

This year’s global cotton crop, first whacked by a Texas drought, now looks very soggy.

US Cotton Belt states were soaked by a tropical storm this month, threatening to rot seed capsules before they were picked. Across the globe in Pakistan, monsoon rains may repeat the crop damage, if not the human tragedy, suffered in last year’s epic floods.

After a quiet few months, traders are increasingly asking whether the cotton market is in for another stretch of sharp price moves.

It will be tough for cotton to repeat the volatility of 2010 to early 2011, in which a combination of low stocks and seemingly bottomless demand from Asia sent prices from 80 cents a pound to $2.27 last March. Cotton then collapsed to about $1 as high spot prices crushed demand from yarn mills.

Now ICE December cotton is sputtering to life, rising 6 per cent in the past week to $1.12 in New York and tripping an exchange-imposed price fluctuation limit last Wednesday. Worries about the size of this year’s crop are an important factor.

Pakistan is typically the world’s fourth-largest cotton grower, after China, India and the US. Last year’s floods damaged 1.5m bales, leaving it with an 8.8m bale crop.

Merchants and local news reports indicate Pakistan’s losses this year may exceed last year’s because of heavy rains in Sindh province, an important growing region. Early Monday, the US Department of Agriculture cut its outlook for Pakistani production by 500,000 bales to 9.8m.

The agency cut its forecast for yields from US cotton fields by 1.8 per cent to 807 pounds per acre. That is below last year’s yield. Somehow, USDA managed to find another 1m acres planted in cotton between its previous month’s report and this one, so the overall harvest forecast did not change.

Traders warn against reading much from the rain gauge in guessing cotton crops. Storms that can be devastating in some areas can boost needed moisture elsewhere.

In a weekly crop progress report released later Monday, the USDA did not touch estimates of how much cotton was in fair, good or excellent condition, despite fields drenched by tropical storm Lee.

There are other reasons to be sceptical of a cotton rally this year, among them record crops from Australia and Brazil earlier this year and high expectations for China and India.

But before getting too carefree, it would be wise to pack an umbrella.