Cotton market boosted by attractive price level (Germany)

Bremen CIF Index reports that the New York Cotton Futures for July have dropped again by 4 cents since last week’s report arriving at the level of November 2009; however on Wednesday the futures rose by 3 cents again. Expecting further steps in solving the Euro-crisis, prices for other raw materials rapidly increased as well; yet the cotton market obviously boosted by an attractive price level for satisfying short-positions.

On the local market prices for cotton available from the origin for near dates as well as demanded varieties showed a firmer tendency than the New York Cotton Futures. Despite a stronger US-dollar the price level was sufficiently interesting for several processors to start enquiries and in the end purchase quantities exceeding the satisfaction of short-term demand.

A large range of proveniences interesting regarding to price as well as quality was contracted. The purchase of ELS-/LS-cotton was predominantly focussed on delivery in June. The continuous trend to the short-term satisfaction of demand was supported by the common uncertainty concerning future price and economic developments.

Reports informing that the apparel industry tends to change its collections faster and to produce lower stocks probably add to this uncertainty.

The following turnovers were reported from the medium staple range: USA California Acala sgd. for near dates, West Africa for the 3rd and 4th quarter 2012, Paraguay for the 3rd quarter 2012 as well as Greece and Spain for the 4th quarter 2012.

Sudan Barakat, Giza 86, Giza 88, Israel Pima and Spain were traded for the 2nd quarter 2012 in the ELS-/LS-range. USA California Ultima rgd. was ordered for the 2nd and 3rd quarter 2012.