Bremen cotton index down from last week (Germany)

Bremen CIF Index reports that the latest USDA crop estimates were published on Friday last week. Quite a few market participants reacted surprised regarding the figures considering reports on lacking rain in major cotton planting areas.

The USDA forecasted – taking into account regional differences – a large production quantity, moderately growing consumption and consequently a record stocking level.

Hence the ICE-futures dropped back to the level of the previous week and the CIF Bremen Index decreased by about 300 points as well.

The price level achieved on the local market seemed to be interesting enough for some cotton processing companies to close contracts despite the continuing company holidays.

In the medium staple range contracts were closed for Central Asian descriptions for prompt delivery and West African cotton for prompt as well as the 1st quarter 2013.

In the long and extra-long staple segment prompt delivery was agreed upon Giza 86, Giza 88, Israel Pima and US Pima.