Christmas Holidays Limit Turnovers

Taking a look back to the Bremen CIF index of last year, when the index amounted to 192.10 cts/lb. on January 3, 2011, it can be seen that the CIF index has almost halved: Yesterday's index was at 103.20 cts/lb. Futures and pricing have registered a continuous downward trend until Christmas; however, they have increased again since the beginning of the year. Whether this indicates a general trend reversal is not known. Maybe the developments in coming weeks will point out the direction, when the prospects on the side of the production will become clearer as well. According to reports there has been steady demand from Far East and China. Purchases by China have generally said to stabilize the New York Cotton Futures. In contrast to last year turnovers appear to develop stable at the most on the domestic market. If nothing else the Christmas holidays have contributed to the calm business during the last reported week.

According to various reports a turnover growth is expected in the textile and apparel industry in 2011, especially for technical textiles. The textile retail, on the other hand, has not met its expectations from the beginning of the year. They are assessing their prospects for 2012 only cautiously optimistic at the time being. Also from the point of the first processor the order volume showed no fundamental change by the end of the year. Since the pressure on the yarn prices has remained, cautious business activity continued. Any interest mainly concentrated on cotton for prompt delivery.

Contracts were closed for cotton from West Africa,Central Asia and Greece for the 1st quarter 2012 in the medium staple range.

The need for LS/ELS-varieties in the 1st quarter of 2012 was satisfied by Egyptian Giza 86 and Giza 88, Israel Acalpi, Israel Pima and US Pima.