Bremen CIF Index reports that the price indices dropped considerably for a short term inspired by the higher production and stock estimates of the latest USDA-report; yet they rebounded surprisingly fast again. On average prices remained on a stable level during the reported week.
Larger turnovers at the ICE for covering short positions amongst others contributed to the price stabilization. The price development on the market for competing crops and the partially lacking quality of the new US-crop seemed to have had influence in addition to other reasons.
The price rebound affected the medium staple business during the reported week in particular. The industry currently possessing sufficient raw material returned to a wait-and-see-attitude expecting decreasing prices. Contracts were only closed for smaller amounts on available varieties for near dates with main focus on long and extra-long staple cotton.
The following contracts were closed:
In the medium staple range: Central Asia for prompt delivery and West Africa for the 1st quarter 2013.
Long- and extra-long staple cotton: Israel Pima and US Pima for prompt delivery as well as Sudan Barakat and US SJV Acala for the 1st quarter 2013.
