The issuance import quotas for over 5 million bales of imported cotton allows those mills who have been buying hand-to-mouth to step up their coverage.
A wire service story quoting a Chinese official confirmed that their domestic stockpile is becoming depleted and that imports would probably increase later this year added fuel to the bull argument.
Trade sources in the same article estimate that China will have to import 1.37 million bales in July and 1.8 million in both August and September - numbers that make the 700,000 in cert stock seem small. Technically, cotton posted outside range days to the upside Wednesday that set the tone for the balance of the week.
In other markets, the CRB moved to new highs for the calendar year this past week. As one analyst put it, "wheat and corn were hit out of the ballpark" last week. An explosive weather rally started on Monday and never looked back. Chicago wheat soared 79 cents and corn 35 to 37 cents.
Soybeans were "late bloomers" for the bulls but finally caught fire on Friday. Soybeans gained 25 cents for the period. Gold gained $9 for the week while Silver closed 22 cents higher Crude oil gained $3.24.
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.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "UBM China (Shanghai)")
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
