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Weak euro influences cotton market
20
May '10
The demand has decreased considerably in the course of last week according to merchants' reports. They assume that the weak Euro, the strong US-dollar as well as the overall price situation unsettled the spinning industry significantly. Yet despite a smaller amount of contracts to partly high prices long-term demand planning was identifiable. Because of limited supply from the origin only descriptions from Central Asia and West Africa could be offered in the Upland-range. In the ELS/LS-range the spinning industries obviously have got enough cotton on stock, too, to be able to slowdown demand in view of the current price development.

Upland-cotton was sold for near dates as well as the 3rd and 4th quarter 2010 from Central Asia and West African descriptions for prompt and the 4th quarter 2010.

ELS/LS-need for prompt delivery was satisfied by US-Pima, Israel Pima, Sudan Barakat and Egyptian GIZA 86 + 88. Israel Pima was also sold up to the 3rd quarter 2010.

Bremen Cotton Exchange

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