Influence of Crop Estimation

The reporting week was influenced by the recent USDA estimation. After publication of the report on Thursday, prices quoted at the ICE instantaneously dropped. Despite of moderate consumption increases the USDA projected stock piling at a record level in 2012/13. Prices for July, though, consolidated by mid-week again. The local market showed another picture. The lower prices for cotton obviously aroused the interest of the processors. The CIF Bremen Index, however, has remained firmer, since the prices quoted at origin for good qualities from the old crop and nearby delivery hardly followed the New York parameters. The firm dollar as well as financing costs influenced the decision for closing contracts, too. As the price ideas of trade and industry still diverged, only limited minimum amounts were purchased for current need.

Cotton from West Africa, as well asIsrael Acala was traded for prompt delivery in the medium staple range. Moreover contracts were closed for West Africanand Central Asian descriptions for the 3rd quarter 2012.

The LS-/ELS-market registered contracts for Giza 88 and Israel Pima for near dates.