CNCotton Daily Price (29 Dec 2010)

Import prices were generally lower, but Australian and Brazilian styles firmed up.

Some large mills are preparing to extend coverage before holidays, but actual offtake decreased from normal years. Smaller mills are also buying in a piecemeal pattern. Overall, the industry is bullish on post-holiday market. The slowly improving demand is limited by higher stock, financial pressure and sluggish downstream market. Today, physical price continued to press higher.

ZCE cotton futures moved quickly lower after opening but rebounded slightly towards closing. The market is basically quiet before holiday. While many mills are bullish on market, near term demand should be limited. Futures price is likely to consolidate in the last trading days of the year.