China Cotton Market Daily(9 Nov 2010)

CCF Price

·11/9 CCF RMB price for type 329: 30560yuan/mt, +565yuan/mt
·11/8 Cotlook A: 161.80cent/lb, +1.80cent/lb

International cotton market
ICE cotton futures settled "limit-up" again on Monday. Traders and analysts contributed the rises to high demand, particularly in China. As to US cotton, the harvest was 71% complete, much quicker than the same period last year of 41%.

China cotton
Cotton prices continued the upward momentum. Prevailing offers for grade 3 cotton (inferior quality) reached 31000-31200tyab/mt. Growers were holding tighter to their seed cotton. Higher offers for Xinjiang grade-3 cotton have reached 31800-32000yuan/mt. Cotton enterprises were confident about future development and provided few discounts in trading.

ZCE cotton saw smaller gains today. Supply tension could still provide some support, but the announcement of stabilizing cotton market issued by seven official departments still dampened market sentiment to some extent.

Imported cotton
CIF offers continued to hike. The prices have been increasing for seven days. Offers for US SM have broken 170cent/lb and the offers for EMOT SM 1-1/8 were largely at 170-171cent/lb, equal to 29100-29300yuan/mt under sliding scale duty.

The inquiry for India and US cotton was good, but it hard to find goods arriving bfore Dec 20.

($1=CNY6.66)