The Rupp Report: A Lot Of Traffic In The Cotton Trade

Cotton is heavily on the move. Various information sources report that there is heavy traffic in
cotton trading. The New York futures soared this week, with March rallying 393 points to close at
72.92 cents, while December advanced 194 points to close at 72.70 cents, explains England-based
cotton trader Plexus Ltd.

Heavy Spec Liquidation

According to Plexus, the heavy spec liquidation that began in early January ended in a heavy
volume session last week, which forced March to close down at 66.62 cents. Last week alone,
speculators sold 14,135 additional futures contracts net, totaling 1.4 million bales.

Plexus estimates speculators have sold 5 million to 5.5 million bales net over the last five
weeks — most as long liquidation, but also with a slight increase in spec shorts. Plexus adds that
outside of index funds, overall spec participation is currently at its lowest level in several
years.

Big Block Of Index Funds

A week ago, index funds were about 7.3 million bales net long, Plexus reports, adding that
“index funds are not driven by price, but by investment dollars flowing in and out of these index
products. … On the other side of this big block of index fund longs is the trade, who is probably
around 8 million bales net short at this point after covering over 6 million bales since the
beginning of the year.”

The report continues: “If the trade continues to get out of basis-long positions and mills
fix on-call sales (3.1 million bales are on March, May and July), both of which requires short
futures to be bought back, then the question remains: who will take the other side?” As Plexus
comments, index funds are passive — as currently are speculators — further adding, “With the sell
side exhausted, all that was needed was a trigger to ignite a rally into a void of selling.” The
report notes that positive signs in the outside markets and a weaker dollar, and the latest U.S.
Department of Agriculture (USDA) report triggered all sorts of buy stops.

Increased Production

According to Plexus, the surprise in the USDA report was not the increase of U.S. exports to
12 million bales and the corresponding drop in U.S. ending stocks to 3.3 million bales, but the
1.17 million-bale increase in global mill use, bringing total usage up to 115.53 million bales. “If
the USDA is correct with their consumption estimate, it means that world production will have to
increase by 12.79 million bales next season just to keep ending stocks from shrinking any further,”
the report states.

Pakistani Cotton Under Pressure

According to the Pakistan Cotton Ginners’ Association (PCGA), cotton prices reached a high
level when a futures contract deal matured at 5,500 Pakistani rupees per maund (1 maund equals
37.32 kilograms) in Shahdadpur, Sindh. The total yield for the 2009-10 crop season is 11.56 million
bales — still 3 million bales lower than market requirements.

Contracted deals with ginners totaled a record-breaking 5,200 rupees per maund. The clash of
short-term negative supply fundamentals and the outlook for reduced domestic production and a sharp
drop in 2009-10 stocks also drove cotton price volatility, PCGA reports. There will be a 3
million-bale gap in Pakistan compared with requirements of 14 million bales, as the 2009-10 season
ended with a 2.5 million-bale shortfall. The Karachi Cotton Association (KCA) also reports its spot
rate moved once again to an historically high position in Pakistan, rising 75 rupees per maund to
4,875 rupees.

The Need To Import

The textile sector will have to import a huge quantity of cotton to meet the shortfall.
Pakistan’s textile sector must bear the burden of around $800 million to import cotton from the
United States and Brazil owing to the decline in cotton yield this season. A cotton virus caused a
drop of some 20 percent in crops in the Punjab and interior region. Other factors include reduced
area under cultivation because of a shift toward sunflower and sugar cane production, and severe
weather conditions.

During the crop season, the textile sector purchased 1.05 million bales, and private-sector
commercial exporters bought 817,810 bales. Cotton inventories sold during this season totaled 10.97
million bales, and stocks remained at 953,410 bales.

Tight Stocks

“The USDA now predicts that ending stocks outside China will be no more than 33.8 million
bales by the end of the season,” Plexus reports. “This compares to 40.1 million a year ago and 42.2
million in 2007-08. … [S]tocks will be very tight by the end of July and … mills depend on
these stocks in August, September and October to tie them over to new crop.

“Plexus estimates that “the trade will most likely be a strong net buyer of current crop
futures until July expires about four months from now … . Speculators, who just fell into a
bear-trap, will also be more inclined to approach the market from the long side, while index funds
will probably remain relatively passive. Since we expect there to be an imbalance between buyers
and sellers in the second and third quarter, prices will need to rise to a level at which new
shorts can be tempted.”

The traffic is continuing.

February 16, 2010

Discover Natural Fibres Initiative Established

As a continuation of the International Year of Natural Fibres 2009 (IYNF 2009) initiative —
declared last year by the Food and Agriculture Organization of the United Nations General Assembly,
to raise awareness of natural fibers — the IYNF 2009 steering committee’s member organizations
have decided to extend the cooperation and projects among all relevant natural fibers organizations
as a permanent ongoing project.

The Discover Natural Fibres Initiative (DNFI) is an alliance of leading international natural
fiber associations and organizations including the Cotton Council International and the
International Cotton Advisory Committee, both based in Washington; the Germany-based Bremen Cotton
Exchange; the Switzerland-based International Textile Manufacturers Federation; and the
Brussels-based International Wool Textile Organisation (IWTO), among other organizations.

The DNFI’s Secretariat will rotate annually to one of the alliance organizations. Henrik
Kuffner, director general of IWTO, has been nominated committee chairman for 2010.

February 16, 2010

Sunoco To Sell Polypropylene Business

Philadelphia-based Sunoco Inc., a manufacturer of petroleum and petrochemical products, has agreed
to sell its polypropylene (PP) business subsidiary Sunoco Chemicals Inc. to Braskem S.A., a
Brazil-based producer of petrochemicals and thermoplastic resins, for approximately $350 million.
The sale will include Sunoco’s PP manufacturing plants in Marcus Hook, Pa.; La Porte, Texas; and
Neal, W.Va., which combined have the capacity to produce approximately 2.1 billion pounds of PP
annually. The sale is expected to be completed by March 31.

February 16, 2010

Northeast TAPPI And PIMA Sections Merge To Form Empire State TAPPI/PIMA

The Norcross, Ga.-based Technical Association of the Pulp, Paper, Packaging and Converting
Industries’s (TAPPI’s) Empire State Division and The Paper Industry Management Association’s
(PIMA’s) New York/Canadian Division have merged to form Empire State TAPPI/PIMA. The new
organization will offer services to individuals working in the pulp and paper, corrugated,
nonwovens and packaging industries in New England — including Connecticut, Maine, New Jersey, New
York, Pennsylvania and Vermont — as well as in parts of Ontario and Quebec.

“Because we have joined these two organizations we are now in a better position to provide
more services, better programs and true value to our membership,” said Eric Ouderkirk of Nalco,
immediate past chair of Empire State TAPPI and previous chair of New York/Canadian PIMA. “The paper
industry has been under stress for a number of years. In the case of Empire State TAPPI and the
NY/Canadian Division of PIMA, our spirited collaboration over the past several years has resulted
in a deliverable to the local paper industry that is being valued and most importantly, utilized.”

February 16, 2010

Industrial Netting Offers Woven Mesh Industrial Fabrics

Minneapolis-based Industrial Netting — a producer of plastic netting products for filtration,
material handling, construction, agricultural and industrial applications — has added woven mesh
industrial textiles to its product line. According to the company, the fabrics have finer openings
than traditional extruded nets. Weft or filling threads are run across the width of the fabric at
right angles to the warp machine direction yarn, creating square mesh openings as small as 1
micron.

The woven mesh fabrics are offered in a range of nylon, polypropylene and polyester yarns and
fibers. According to the company, the fabrics meet technical requirements for use in automotive,
biomedical, chemical processing and water treatment applications, and can be used as filter cloths.
The mesh fabrics also can be wrapped and ultrasonically welded to the outer surface of Industrial
Netting’s rigid mesh tubes.

February 16, 2010

ReSource Diverts More Than 6 Million Pounds Of Carpet Waste From Landfill

February 16, 2010 — Aurora, CO — The ReSource Commercial Flooring Network (ReSource) announced
today that its Members diverted more than 6.8 million pounds of carpet waste from landfills in
2009.  

Through the ReSource initiative, Ecollect™, ReSource Members promote sustainable business
practices throughout their locations taking a holistic approach to the environment and our goal of
sustainability.  Methods to reduce and eliminate waste and other non-value added processes
that impact our environment are considered throughout all projects.

ReSource Members understand the various processes for reclaiming product based on its
economical and environmental impact and recommend the most effective and sustainable process for
reclaiming material and diverting it from landfills around the country.  The ReSource
Commercial Flooring Network, LLC is a member owned network of professional commercial flooring
contractors located throughout the United States. 

ReSource encompasses 100 locations with Member Owners in all major, most secondary and some
tertiary markets throughout the U.S.  To locate the ReSource dealer in your area, visit
www.rcfn.com.

Press Release Courtesy of ReSource

TenCate Expands The TenCate Defender™ M Family Of Products

TenCate Defense & Tactical, a global business unit of TenCate Protective Fabrics, the largest
manufacturer of inherently flame resistant fabrics in the world, has added several new products to
its TenCate Defender™ M family of Lenzing ® FR blended fabrics. The latest innovation is TenCate
Defender™ M in a variety of dark shades. Displayed at Milipol in Paris, France, in November, these
fabrics developed for the EU and Asia markets and will be announced for US availability in 2010.

The TenCate Defender™ M  US product offering is currently available in several weights
and constructions, including a variety of camouflage woven patterns, laminates and knit fabrics.
These fabrics, made in the US with the optimum blend of Lenzing FR rayon, offer superior protection
from flame and heat while maintaining comfort. The TenCate Defender™ M fabric construction and
fiber blend provides significant performance and comfort advantages and is the specified camouflage
material for US ground troops deployed to Iraq and Afghanistan.

TenCate Protective Fabrics, a global division of Royal Ten Cate USA, is based in Union City,
GA.  Royal Ten Cate USA employs over 1,400 in the US.

Press Release Courtesy of TenCate Protective Fabrics

February 16, 2010

Everybody’s Talking About You


P
 remium brands are, by necessity, built one block at a time, and over an extended period
of time, until they weave themselves into the very fabric of our existence. Yet, as evidenced by
recent events, brands that have been meticulously and expensively built over a considerable period
of time can come crashing back to earth in a veritable blink of an eye. Just look at where Tiger
Woods is today compared with just a few short months ago. And the gold standard for automotive
quality over the past 20 years, Toyota, has seen years of brand building and cultural assimilation
go down the tubes almost overnight.

So what does this mean for the textile industry in general and yarn spinners in particular?
The answer is simple. Take absolutely nothing for granted, and be proactive communicators. In
today’s global marketplace, every activity, every transaction, every shipping error or
manufacturing glitch is visible for the entire world to see.

“Whether you manage a consumer products company, an automotive company or a textile
manufacturing facility, you are going to be facing a new communications reality  over the next
few years,” said a Carolinas marketing and communications expert. “Today’s consumer has access to a
lot more information than ever before. Not only that, for the first time in history, consumers are
actually creating their own content on the Internet. Regardless of what you do or how you do it,
people are soon going to be talking about you on the Internet, if they aren’t already.”

She went on: “In years past, if there was a part of your company that someone didn’t like, he
or she might call her friends on the telephone. If he was really unhappy, he might contact the
Better Business Bureau or write a letter to the local newspaper. Today, however, he is likely to
get on Facebook or MySpace and make a post about your company — which can be instantly visible to
any number of people. If he or she is really unhappy, she might make a video and put it on YouTube.
These communications can be visible to the entire world.”

But the same also holds true if your consumer is deliriously happy with you. “If you have
delighted a customer, you might get positive exposure on the Internet,” she said. “But the gist is
this: Regardless of what your company does or how it does it, you’ve lost control of some of your
messaging. Your customers can now be just as vocal in the marketplace as you. Not only that, but
your competitors, your enemies — and anybody else — can also put in their two cents’ worth about
who you are and what you do.”


Be Proactive

So, what is an enterprising executive to do? According our industry observer, the answer is
to communicate more about yourself than others are communicating about you.”Start a blog about what
your company is doing,” she said.  “It’s easy, everyone with Internet access can do it, and it
can have amazing results. Just look at the blog that inspired the movie “Julie & Julia.” 
Get a Facebook or a MySpace page — for yourself and your company. Acquire friends and post lots of
updates about what you are doing. Put videos on YouTube about your products, people and processes.
In short, just communicate, communicate, communicate.”

So how does that apply for companies that produce what many would consider to be commodity
products? “Everybody has a brand,” she said. “You may sell your product as a generic for a
commodity price, but your brand is still behind that product. Your quality standards are there for
that product. Your delivery capability and reputation are included in that commodity. These are all
things you can communicate. In fact, communicating your standards and ideals in a commoditized
market is the perfect way to create differentiation from your competitors.”

The bottom line, she says, is that companies — yes, even yarn spinners — need to take a
proactive communications role because, in the end, “somebody, somewhere, is going to define your
brand for you. It might as well be you.”

February 16, 2010

February 2010

The Romo Group, England, has redesigned its upholstery fabric brand formerly known
as Kirkby House into Kirkby Design, a modern, high-performance fabric resource library targeted to
both residential and contract applications.

Greenville, S.C.-based
Safety Components‘ WeatherMax FR fabric for awnings, tents and other outdoor
applications is now available in 10 colors. The solution-dyed fabric is ultraviolet-, water-, and
fire-resistant, and features SaturaMax yarns offering dimensional stability and a breathable
HydroMax finish offering mold and mildew prevention.

Potomac, Md.-based
Lavanta Textiles has launched a new website, located at
www.lavantatextiles.com, which presents its Turkish
textile products for the U.S. hospitality market.

Jackson, N.J.-based
Newson Gale Inc. has redesigned its Bond-Rite™ clamp, a static-electricity
eliminator suitable for use with mobile or portable plant equipment. It includes a redesigned
electric module to improve battery/working life, and an in-line Quick-Connect feature that
facilitates quick and easy field replacement of the clamp and/or retractable cables in case they
are damaged in service.

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Newson Gale Inc.’s redesigned Bond-Rite™ clamp

Van Nuys, Calif.-based
Cherokee Inc. has signed an exclusive license agreement in the United States with
San Fernando, Calif.-based
JEM Sportswear to manufacture junior knit tops for JEM’s Sideout brand.

Owings Mills, Md.-based
Lion Brothers Co. Inc. has received Oeko-Tex® Standard 100 certification.

Switzerland-based
bluesign technologies AG has certified Wakefield, Mass.-based
Agion Technologies Inc. for its Agion Active™ dual action odor-elimination textile
finish.

The Hohenstein Institute, Germany, has released a publication that charts clothing
development from the first primitive clothing to modern functional textiles and describes the
milestones in clothing physiology research over recent decades. The publication is available free
of charge on its website, located at
www.hohenstein.de.

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The Hohenstein Institute’s publication on clothing physiology research

Grand Rapids, Mich.-based
X-Rite Inc. has received the top innovation award from the
China Fashion Color Association for its ColorMunki™ Design, an instrument/software
package that offers color control and color creation tools for digital workflows.

England-based
Mudpie Ltd. now offers the following trend books: Baby Graphics — The Best of
Cutiepie; Mudpie Badges — The Best of Mudpie Badges; Print & Pattern Trends for autumn/winter
2011-12; and MPD Active.

Mountain View, Calif.-based
Damco has integrated Madison, N.J.-based
Savi Networks‘ SaviTrak™ wireless tracking technology into its logistics service
offerings to provide real-time, automated information on location and status of customer shipments.

Minneapolis-based
Turck Inc. has introduced the D-Size 1-3/8 inch powerfast™ modular wiring system
for handling high-current applications for machine power distribution and motor control. The
complete power distribution system includes 3- and 4-pin corsets, receptacles and tees that supply
up to 600 Volts and 30 Amps.

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Turck Inc.’s D-Size 1-3/8 inch powerfast™ modular wiring system

Cincinnati-based
Advantech Corp.‘s Industrial Automation Group now offers the PCI-1220U two-axis
motion control card for stepping and pulse-type servo motors with hardware-controlled linear and
circular axis interpolation.

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Advantech Corp.’s PCI-1220U

Switzerland-based
Baumer Group has introduced the IFRH series of two-part proximity inductive high
temperature sensors designed for sensing applications, including detection of metals, in
temperatures ranging from -25˚C to +180˚C. The IP67-rated sensors are available in M8, M12 and M18
designs with chromium nickel steel housings.

The
International Trade Centre, Switzerland, now offers an online version of its
Cotton Exporter’s Guide in English, French and Spanish. The guide offers a comprehensive view of
the entire cotton value chain from a market perspective.

NDC Infrared Engineering, Irwindale, Calif., has unveiled the NW710 infrared
sensor, a non-nuclear sensor that can simultaneously measure both basis weight and residual
moisture of polypropylene spunbond and spunbond/meltblown/spunbond (SMS) nonwoven fabrics. The
sensor can measure a variety of basis weights from 8 grams per square meter (gsm) spunbond to 90
gsm SMS.

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NDC Infrared Engineering’s NW710 infrared sensor

Natick, Mass.-based
Cognex Corp. has debuted the 3D-Locate™ library of 3-D vision software tools that
enables automation equipment to work with a wider range of parts including stacked or tilted items.
The company also has introduced In-Sight® 4.4 software for its In-Sight vision systems. In-Sight
4.4 includes new color tools, improved calibration and expanded data access within its EasyBuilder®
configuration software; and the InspectEdge™ collection of tools that detect edge defects and
inspect edge pairs.

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Cognex Corp.’s 3-D Locate™ software (left) and In-Sight® 4.4 software

East Providence, R.I.-based
CleanBrands LLC has launched CleanRest® barrier window treatments, intended to
control the natural buildup of household allergens.

Beresford, S.D.-based
Sioux Corp.‘s 100-percent electric E-Series line of pressure washer and steam
cleaners has earned Mark certification, signifying that the products meet European Union consumer
safety, health and environmental requirements.

Duquesne, Pa.-based
American Textile Co. has received
Graphic Design USA‘s 2010 American Package Design Award in the Home Goods category
for its Rest Right™ pillow protectors; and
The Public Relations Society of America, Pittsburgh chapter’s 2010 Renaissance
Award in the Business to Consumer category for its Aller-Ease® “Flip for Fall” media relations
campaign.

England-based
SDL Atlas Ltd. has redesigned its website — located at
www.sdlatlas.com — presenting its textile testing equipment,
laboratory products, consumables, and service offerings for the fabric, apparel, yarn and fiber
industries.

Sweden-based
Atlas Copco AG has been listed on The Global 100 list of the world’s most
sustainable corporations for the fifth consecutive year.

Erie, Pa.-based
Eriez 5-Star Service now provides downloadable parts lists for its core products
online at
http://service.eriez.com.

The
Association of the Nonwoven Fabrics Industry, Cary, N.C., and Brussels-based
EDANA, the International Association Serving the Nonwovens and Related Industries,
have released the 2010 edition of Harmonized Test Methods: Nonwovens & Related Industries.

The Germany-based
Textile Research Board has released Textile (R)Evolution, a brochure that covers
33 textile innovations that have impacted industry and social history. The brochure can be ordered
or downloaded free of charge at
www.textilforschung.de.

Florham Park, N.J.-based
BASF Corp. has increased prices for Styrofan® carboxylated syrene-butadiene
polymers sold to the carpet industry in the United States and Canada by 8 cents per dry pound.

Columbus, Ohio-based
Hexion Specialty Chemicals Inc.‘s North American Dispersions business has raised
prices by 5 cents per wet pound in the United States and Canada for all acrylic, styrene acrylic,
vinyl acrylic and other polymers used in the adhesives, textiles, nonwovens and construction
markets.

Effective March 1, Fairlawn, Ohio-based
Omnova Solutions Inc. will raise prices by 5 cents per dry pound on styrene
butadiene latex for carpet and related markets.

February 16, 2010

Fiberweb, Chisso Explore Feasibility Of Nonwovens JV In China

London-based Fiberweb Plc — a manufacturer of high-performance, specialty nonwovens — is studying
the feasibility of establishing a spunbond nonwovens joint venture (JV) company in China in
partnership with Japan-based Chisso Corp, a manufacturer of chemical products for a wide range of
end-use applications.

The JV would use the latest-generation spunbond and spunmelt manufacturing techniques to
produce hygiene and personal care nonwovens. The study will estimate volumes and technologies that
would be required to support hygiene and personal care products over the next three to five years
in China and other Asian markets.

“This agreement between Chisso and Fiberweb to explore investment opportunities in Asia
jointly marks another exciting step in Fiberweb’s drive to establish a global platform for its
leading spunbond business,” said Daniel Dayan, CEO, Fiberweb. “Both Chisso and Fiberweb bring
important commercial and technical insights to this assessment of the market and we look forward to
a close and fruitful cooperation.”

“I strongly believe that this study allows us to explore the launch of a new joint venture
company to highly satisfy customers by utilizing both parties’ experience and technical expertise,”
said Shunichi Okada, president and COO, Chisso.

February 16, 2010

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