China Cotton Market Daily(15 Nov 2010)

CCF Price

·11/15 CCF RMB price for type 329: 30415yuan/mt, -690yuan/mt
·11/12 Cotlook A: 166.40cent/lb, -2.00cent/lb

International cotton market
ICE cotton Friday on growing fears China is about to raise its interest rates to cool its rapidly heating economy.

China cotton
Offers for seed cotton and cotton continued to fall today. In Shandong and Hebei, the offers have been to 11.6-12.6yuan/kg. Most cotton enterprises have stopped purchasing seed cotton and sidelined. As to their cotton sales, they lowered offers successively affected by the price cut of Shandong Weiqiao during the weekend. Most type 329 was quoted at 28400-28500yuan/mt.

ZCE cotton still closed lower. It has started to drop since last Wednesday. However, some industry players said the decline should be limited considering the seed cotton was purchasing at high price previously.

Imported cotton
CIF offers for foreign cotton continued to fall today, mostly by 3-5cent/lb. Offers for US EMOT SM 1-1/8 were mostly at 163.5-166.0cent/lb, for Jan/ Feb/ Mar shipment, equal to 28000-28500yuan/mt under sliding scale duty, about 500-1000yuan/mt cheaper than domestic cotton.

Sales for Customs clearance cotton was relatively slack. US SLM were largely quoted around 28500yuan/mt.

($1=CNY6.63)