China Cotton Market Daily (20 Apr 2011)

CCF Price
•4/20 CCF RMB price for type 329: 29895yuan/mt, -125yuan/mt
•4/19 Cotlook A: 218.95cent/lb, -0cent/lb

International cotton market
ICE cotton futures prices generally fell Tuesday on higher China cotton output estimate, more Indian cotton arrivals and a stronger US dollar. Recently, China Association for Science and Technology announced its output estimate for 2010/11 season, at 6500KT, higher than Statistic Bureau’s 5970KT. Cotton futures for May delivery closed at 189.82cent/lb, down 6.63cnts. Jul contract closed at 171.16cent/lb, down 7cents.

China cotton
As Shandong Weiqiao lowered its cotton purchasing price today, the panic sentiment among small cotton enterprises spread somewhat. Lower offers for inferior grade-4 cotton were heard below 27000yuan/mt constantly. However, offers for type 329 remained at 30000-30500yuan/mt. Sales were slow.

ZCE cotton futures price opened high and closed slightly higher. The most active Sep contract closed at 27810yuan/mt, up 155yuan/mt.

Imported cotton
CIF offers for foreign cotton fell sharply today. The offers for 2010/11 drops generally fell 5-6cent/lb while the offers for 2011/12 crops fell 1.5-1.75cent/lb. Sales were thin in major cotton consumption areas amid the high prices.