China Cotton Market Daily(11 Jan 2011)

CCF Price
•1/11 CCF RMB price for type 329: 2785yuan/mt, +10yuan/mt
•1/10 Cotlook A: 169.25cent/lb, -0.75cent/lb

International cotton market
US cotton futures finished higher on Monday on speculative and possibly some mill buying, but business was moderate as most players awaited release of a key government crop report this week, traders said. Benchmark March cotton contract on ICE Futures US increased 2.65 cents to conclude at $1.4325 per lb, trading from $1.405 to $1.446.

China cotton
Offers for Xinjiang cotton were firm. Higher offers for grade 3 XPCC cotton were at 28000yuan/mt.　Supply of high-grade ones was tight. Sales volume was hard to increase as cotton enterprises left Xinjiang and came back to upcountry for Lunar New Year holiday. Offers for long staples held steady, with rises in some areas. Traded price for 137 was at around 41500yuan/mt ex-station. Some cotton enterprise adjusted up offers by 500yuan/mt due to supply shortage.

ZCE cotton futures opened high and fluctuated upward. The most active Sep11 closed at 28810yuan/mt, up 405yuan/mt.

Imported cotton
CIF offers for foreign cotton rebounded greatly today. The offers for Brazilian and Australian cotton increased greatly by 2.75-3.0cent/lb. Other growths saw an increase of 2.5-2.75cent/lb. Offers for long staples held steady.

Offers for Customs clearance cotton consolidated at high levels. Although sales were not good, most sellers were reluctant to sell at low levels as they were bullish about post Spring Festival market. Indian S-6 was offered at 162-163cent/lb. The mills were not active in buying as the price was not competitive enough.

($1=CNY6.63)