Pressure on cotton prices this week - O.A. Cleveland
28 Jan '08
3 min read
Turkey was the major buyer of Upland with 41,200 RB; followed by Peru and Indonesia. Pima buyers were Pakistan at 10,700 RB; China and India. Again, note the absence of Upland sales to China.
Export shipments totaled 188,300 RB with 157,800 RB being Upland and 30,500 RB of Pima. Primary destinations of Upland were Turkey, 28,800 RB; followed by Thailand and Indonesia. The primary destinations for Pima were Indonesia at 8,600 RB; Taiwan and Germany.
Granted, next week's export report could total 500,000 to 700,000 bales as a result of this week's sell off. Likewise, the current anemic report also reflected a week with New York above 70 cents all week. Next week's report will likely reveal that mills have elevated their price expectations and are now holding off for prices under 70 cents, basis the March New York contract.
While mills are short cotton supplies in many instance; they nevertheless, have seen a bottom in March futures and will be watching the May contract move higher; and face the next round of buying near the 72-73 cent level, basis May. Yet, USDA's current export estimate of 16.0 million bales will be hard pressed to total more than 14.5 million. The result will be only a limited decline in U.S. stock and moves the truly bullish contract month to May 2009, rather than December 2008.
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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.")
