Weak Euro Influences Cotton Market

The demand has decreased considerably in the course of last week according to merchants' reports. They assume that the weak Euro, the strong US-dollar as well as the overall price situation unsettled the spinning industry significantly. Yet despite a smaller amount of contracts to partly high prices long-term demand planning was identifiable. Because of limited supply from the origin only descriptions from Central Asia and West Africa could be offered in the Upland-range. In the ELS/LS-range the spinning industries obviously have got enough cotton on stock, too, to be able to slowdown demand in view of the current price development.

Upland-cotton was sold for near dates as well as the 3rd and 4th quarter 2010 from Central Asia and West African descriptions for prompt and the 4th quarter 2010.

ELS/LS-need for prompt delivery was satisfied by US-Pima, Israel Pima, Sudan Barakat and Egyptian GIZA 86 + 88. Israel Pima was also sold up to the 3rd quarter 2010.