China Cotton Market Daily(27 Jan 2011)

CCF Price
•1/27 CCF RMB price for type 329: 29110yuan/mt, +155yuan/mt
•1/26 Cotlook A: 189.50ent/lb, -1.20cent/lb

International cotton market
US cotton futures finished up the daily limit on Wednesday on another round of speculative and fund buying as players eyed release of a government sales report to gauge demand for the fibre, analysts said. The key March cotton contract on ICE Futures US rose the 5.00 cent limit to close at $1.6683 per lb, short of the new record high at $1.6789 set on Tuesday.

China cotton
On spot market, offers for cotton were firm, but few deals were heard with the Lunar New Year holiday approaching. Only a few textile mills worried that the price could soar after the holiday were inquiring.

ZCE cotton futures opened sharply higher and trended upward. The most active Sep11 closed at 32365yuan/mt, up 1125yuan/mt.
Imported cotton
With ICE cotton futures ending limit-up, CIF offers for foreign cotton again spiked greatly. Most varieties saw an increase of 3-5cent/lb.

Sales for Customs clearance cotton were in depression. Offers were mixed. Higher offers for Mexico SM cotton were at 29500-30000yuan/mt. Textile mills were not active at high levels.

($1=CNY6.59)