The New York Cotton Futures Dropped Much More Than Generally Expected

Following the latest USDA Report published on Friday last week, the New York cotton futures dropped much more than generally expected. The crop estimates for the new season in the U.S.A. had been significantly raised, thus contributing to compensate losses in other important countries.

The expectations regarding global consumption remained higher than during the previous season, but much lower than production. Stocks are therefore predicted at a record level; about sixty percent thereof are stored in China, however.

The quotations for near dates remained relatively untouched by the aforesaid news. The CIF Bremen index pursued that price movement only retained. Expecting even lower prices, the spinners awaited the further development or predominantly agreed on short-term deliveries from stock for the production right before or right after the company holidays. The beginning of the summer holidays was noticeable limiting the turnover.

Contracts were concluded for:
-Medium staple cotton: West Africa for prompt up to the 4th quarter 2014 and Central Asia for prompt.
-Long and Extra-Long staple cotton: Sudan Barakt, Giza 86 and Spanish ELS for prompt.