Wait & watch attitude in cotton markets

CIF Index reports that the New York Cotton Futures have more than recovered from their stock market losses during the last reported week.

The ups and downs of the preceding weeks have probably been aroused by technical factors and investors’ reactions to the latest news without the well-known fundamental data having changed in general. 

The price increase since the beginning of this week has partly incorporated the limited availability for near dates. Next to the impact of the stock performance evaluation, future influences of high prices of the competing crops, the drought in Texas and India as well as speculations on additional Chinese import quotas may possibly play a role.

The company holidays are ending on the domestic market, clearly perceptible by increased enquiries for mostly nearby delivery up to the new crop at the beginning of the reported week.

Some contracts were already closed for dates reaching far into the coming year. Yet due to the price development the processing industry generated a wait-and-see-attitude during the course of the reported week.