Physical prices remain strong (Germany)

The sharp drop in prices for cotton at New York was continuing. The close on 23rd Nov. compared to the close on 16th Nov. was down for about 20 cents. The Cotlook A Index moved also down for about 10 cents compared to last week.

The discrepancy between these two important price indications and physical prices was increasing. To the disappointment of spinning mills quotations for actual deliveries have not followed the movement in New York.

Given tight stocks in origin and uncertainty in supply for first quarter 2011 the prices remained high. When and in which quantities new crops will be available was still a question.

Business for medium staple cotton was calm. The prices for LS/ELS cotton have been strong with a tenor to move higher. There was interest to buy already for shipments in 2012.

Small sales in the medium staple range for the local market were reported in West African cotton for second quarter 2011, in Spanish and Central Asian Qualities for delivery prompt up to first quarter 2011. In the LS/ELS range Israel Pima, US-Pima and US-Ultima cotton were already sold for first quarter 2012. Giza 86 and Israel Acalpi were sold for prompt resp. first quarter 2011.