China Cotton Market Daily(21 Feb 2011)

CCF Price
•2/21 CCF RMB price for type 329: 31885yuan/mt, +95yuan/mt
•2/18 Cotlook A: 233.50cent/lb, +7.00cent/lb

International cotton market
On Friday Cotton futures fell from a record on speculation that the global crop will increase, replenishing a deficit that led prices double in the past five months. Cotton futures for May delivery, the most-active contract measured by open interest, fell by the maximum of 7 cents, or 3.5 percent, to settle at $1.9493 at 2:33 p.m. on ICE in New York.　　

China cotton
As ICE cotton futures dropped the most allowed by exchange limit Friday, plus China's move to increase bank reserve requirement ratio to curb lending and inflation, ZCE cotton futures opened low and trended downward today. The most active Sep11 closed 1255yuan/mt lower at 32200yuan/mt.

With ZCE cotton futures diving further, the increase on spot cotton market slowed down, but offers remained firm on the whole. Higher offers for type 229 retained at 33700-33800yuan/mt. Offers for long staples also stabilized after previous sharp hikes. No.1 corp’s 137 was offered at 47000-47500yuan/mt. Textile mills were more active in inquiring, but not many goods were done as the buy ideas and sell ideas varied.

Imported cotton
Except for long staples, CIF offers for other foreign cotton were adjusted down sharply, generally by 5-7cent/lb. As the offers were constantly raised before and after Spring Festival holiday, fewer deals were heard and the trading volume reduced.

Fewer goods arrived at port recently as well. Indian S-6 1-1/8 at warehouses was still quoted at 32000yuan/mt. Textile mills were reluctant to accept current offers while the cotton enterprises were not eager to sell.

($1=CNY6.57)