China Cotton Market Daily (7 Apr 2011)

CCF Price
•4/7 CCF RMB price for type 329: 30375yuan/mt, -105yuan/mt
•4/6 Cotlook A: 228.00cent/lb, +5cent/lb

International cotton market
CE cotton futures gained the maximum amount allowed Wednesday on worries that the drought in Texas may put off planting. Meanwhile, analyst said China's move to build cotton reserve system was also possible to stimulate demand for US cotton. Cotton futures for May delivery gained 7cents to close at 208.06cent/lb on ICE US.

China cotton
Spot cotton remained weak on the whole. However, cotton enterprises stopped lowering offers as they again found the price adjustment could not stimulate sales. Considering the high warehouse inventory in Shandong and Jiangsu and the difficulty situations of some small textile mills, most industry players were not optimistic about short-term cotton market.

More discounts were offered in actual trading. Lower offers for Xinjiang type 229 were at 31000yuan/mt ex-warehouse in Tianjin, Henan and Hebei. In Shandong and Zhejaing, the offers were about 200-500yuan/mt higher.

ZCE cotton futures price opened high and trends downward. The most active Sep contract closed at 28565yuan/mt, down 190yuan/mt.

Imported cotton
CIF offers for foreign cotton were raised sharply today. 2010/11 US, Australia and Brazilian crops saw an increase of 6-7cent/lb while 2010/11 Central Asian and African crops saw an increase of 4-5cent/lb. Prices for 2011/12 US crops hiked about 4cent/lb. Higher offers for Austrian SM 1-1/8 for Jul-Aug shipment were at 238cent/lb, equal to about 29800yuan/mt under sliding scale duty.

As to Customs clearance, the sales were still thin.

($1=CNY6.55)