The CIF Bremen Index Decreased by About 150 Points Within The Course of The Week

News on higher than expected support for farmers in Xinjiang, sales from the Chinese
National Reserve at attractive prices, slightly decreasing US-exports as well as considerably lower prices for the competing fibre polyester have temporarily contributed to a virtual relaxation on the supply side reducing the pressure on the quotations in New York. Especially investment trusts have evaluated and adjusted their positions newly on the futures market.

Possible reasons for the movement of the futures had only indirect effect on local business.

The CIF Bremen index met with the basic tendency of May and July futures and decreased by about 150 points within the course of the week; a little more cautiously than the Cotlook A Index but still 3 cents below its height two weeks ago, thus following the trend.

Due to uncertainty regarding the price development in the medium term, the wait-and-see attitude of the textile industry with regard to new purchases continued. Contracts on medium staple cotton were predominantly closed for near dates up to the company holidays. Single procurements considered the new crop only in case of foreseeable orders.

Contracts were concluded for:
-Medium Staple Cotton: Central Asia for prompt and the 2nd quarter, West Africa for the 2nd quarter as well and Greece for the 4th quarter 2014.
-Long- and Extra-Long Staple cotton: Israel Pima and Sudan Barakat for prompt and Egyptian Giza 86 for prompt and the 2nd quarter 2014.