Bremen CIF Index reports that the indices of the reported week have considerably decreased after the weather conditions had improved in the major cotton planting areas and larger crop losses were no more predicted.
General economic uncertainties in industrial countries and reports from China that there won’t be any more import quotas lead to damped general assessments concerning the stability of global consumption.
The large stock at the end of the year as well as the just partly sold new crop came to the fore again on the markets. Cotlook A and CIF Bremen dropped back to the level of June this year.
Nevertheless the diverging price ideas for Upland cotton prevailing on the local market were hard to reconcile. Expecting further declining prices as well as relatively good procurement at short-term the spinning industries awaited the price development. Just like last week promptly available quantities were ordered in the first place.
The following contracts were closed:
- In the medium staple range: West Africa for prompt delivery. Central Asia for prompt and the 1st quarter 2013.
- In the extra-long staple range: Israel Pima, US Pima and Sudan Barakat for prompt delivery.
