Indian Export Ban Limits Turnover

The beginning of the reported week was dominated by the impacts of the complete export ban for Indian cotton which had been remitted because Indian spinning companies feared rising purchasing costs and limited supply due to export quantities above the projected amount. The registered amount of exports has especially risen in the second half of February anticipating the decision of the Indian government. Apart from expected difficult contract adjustments, the export ban will limit the worldwide supply with adequate raw cotton varieties further. Even though the decision could be reappraised due to protests of farmers and exporters, Indian yarn manufacturers will certainly enjoy a competitive advantage. After the Chinese import has recently decreased slightly, this measure of the Indian government will preliminarily support constantly firm raw material prices on the world market. The ICE Futures May thus closed limit-up as a first reaction of the exchange on Monday. Processing industries on the local market remained in a wait-and-see-attitude, although some contracts were registered during the first half of the reported week for prompt and near dates.

Contracts were closed for Upland cotton from: Central Asia, West Africa, Greece and Spain for prompt and the 2nd quarter 2012 as well as US EMOT for the 2nd quarter 2012.

Egyptian Giza 88, Israel Pima and Sudan Barakatwere traded for prompt delivery in the extra-long staple range.