China Cotton Market Daily (15 July 2009)
Source: CCFGroup.com Date: 2009-07-17
Cotton price continued to edge up on physical market, driven by short availabilities and the firm auction price. In Shandong and Hebei, the offers for type 329 have reached 13500-13600yuan/mt ex-warehouse, in small volumes. Offers for some Xinjiang cotton already in upcountry hiked quicker. May cotton enterprises quoted Xinjiang cotton type 329 at 13700-13800yuan/mt, ex-warehouse.
Considering the short supply on physical market, many textile mills increased purchasing volume in state reserve auction, although it was still hard for them to afford the prices. Some mills started to buy cotton reserved in some remote warehouses such as Gansu province as the prices were lower despite more difficult transportation.
Imported cotton
CIF offers for foreign cotton continued to hike today. The offers for US, Australia and Brazil cotton moved up 0.50cent/lb while the offers for African and Central Asian ones hiked 0.25-0.50cent/lb. Offers for India and organic cotton held steady.
Some textile mills said they have obtained the sliding-scale-duty quota recently and some mills have started to buy foreign cotton with the quota. Most quotas were in the hands of big mills.
