CIF Bremen Cotton Index drops down considerably this week

15 May '14

1 min read

While the previous week had only registered marginal changes, the CIF Bremen index dropped considerably during the reported week following the New York cotton futures’ trend.

The quotations at the ICE came under pressure due to adjustments of positions as well as profit takings after the latest publication of the USDA expecting higher production, rising stocks and less demand from China. The current U.S. shipment data remained stable, but the concerns regarding the effects of the Texan drought on the future crop lasted.

The difference between the prices for the trading months December and July has continued to decrease. On the domestic market, potential buyers mostly kept on waiting for the further development of the quotations. There was a perceivable need of the textile industry, but the demand remained reluctant and focussed on common proveniences.

Cotton was only acquired for immediate need or at the utmost two or three months in advance for the period right before or after the company holidays.

Contracts were concluded for:

-Medium Staple Cotton: West Africa and Central Asia for prompt as well as the 2nd and 3rd quarter 2014.

-Long and Extra-Long Staple Cotton: U.S. Pima for prompt delivery.

Bremen Cotton Exchange

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