Bremen reports wait & watch attitude in cotton markets (Germany)

Bremen CIF Index reports that the July-contract at the ICE gained by more than 13 cents for a few days during the reported week before dropping again obviously benefiting from good US-export figures as well as boosted by the necessity of some market participants to cover short-positions.

The New York December contract as well as the Cotlook A and CIF Bremen index followed this speedy price development only in small steps.

Prices demanded by the origin for nearby delivery respectively up to the expected shipping months of the new crop and taking into account the development in New York have not been accepted on the local market in general.

These price ideas were encountering processing industries that acted rather doubtful and indecisive due to the development of the prices and that were apparently sufficiently covered until the company holidays. Therefore a wait-and-see attitude prevailed. Only a small amount of limitedly available cotton varieties was sold predominantly for prompt delivery.

In the medium staple range contracts were closed for cotton from West Africa and  Central Asia for prompt delivery, from Izmir (Turkey) for the 3rd quarter 2012 and from Greece for the 4th quarter 2012. US-Pima cotton was sold for prompt in the ELS-range.