Market Observation
The strong increase of the March-futures in New York during the previous week was not continued in the reported week. The quotations were stable on a level like the previous week. The next trading months came more and more on focus, just like the fundamental data of the market. Outside Europe it was reported a robust demand. The dollar rose and made cotton for European purchasers even more expensive. Here the processing industries' price ideas were still mostly lower than those at origin. Therefore a wait-and-see attitude prevailed and the price development was observed. Cotton was preferably acquired for instantaneous need in the first quarter. Taking into account the availability of certain proveniences contracts were already closed for delivery in the last quarter of this year for quality insurance reasons.
The following contracts were closed:
• Medium staple cotton: Costa Rica for prompt delivery, West Africa, Brazil and Central Asiafor the 1st quarter, Central Asia for the 2nd quarter 2013 as well.
• Long- and extra-long staple cotton: Israel Pima,Egyptian Giza 88 and Sudan Barakatfor prompt delivery. Sudan Barakat and USA Acala rgd. for the 4th quarter 2013 already.