Still confronted with cotton shortages at home, cotton processors apparently preferred taking advantage of prices below the 80-cent level, probably anticipating a new increase in the coming weeks. .
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International prices were supported by strong demand from a large series of low-cost countries, including Taiwan, Korea, Pakistan and especially from China. .
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According to the US Department of Agriculture (USDA), US export sales reached 275,000 running bales in the week to October 30th, still at a very high level although 81% below the week earlier. .
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China ordered no less than 141,700 RBs while Mexico purchased 72,700 RBs and Turkey 23,400 RBs. .
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Shipments began sharply rising as a consequence of the boom in sales reported in the previous weeks. Exports to China were 22,700 RBs and should sharply increase in the coming weeks. .
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Since the beginning of the new season on August 1st, China bought no less than 2.316 million RBs after its crop was expected falling this year. .
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According to Washington-based ICAC, China production would be limited to 5 million tons this season (August 03-July 04), 400,000 tons less than estimated a month ago. .
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According to other experts, China production would only be 4.5 million tons.
As a result of cotton shortages in China, cotton imports would rise from 520,000 tons in the past season up to 1.15 million tons in 2003-2004, ICAC forecasts. .
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Boosted by such a stronger demand from China, the average A Index would rise from 55.70 cents up to 68 cents this season. .
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China cotton consumption would less rapidly increase than earlier estimated, however, at 6.5 million tons compared with 6.3 million tons in 2002-2003. .
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Shifting to polyester staple fibers or reducing production, China spinning industry preferred suspending cotton purchases on the domestic markets, actually. .
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Cold weather and early snow in various cotton provinces delayed arrivals at the same time. .
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For the first time in weeks, average 328 grade declined in the past seven days, as a consequence. The indicator was down 0.44% to 17,781 yuan. Prices increased nearly 15% in the past four weeks, however, now at about 97 cents per pound. .
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Domestic rates are expected fluctuating at this very high level with downward processors importing lower-priced cotton from the United States or Western Africa at the same time. .
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On China National Cotton Exchange (CNCE), prices fell by the end of last week before Monday rebounding.
In Pakistan, prices slightly rose in the past week with KCA official spot price at 3,325 rupees per maund of 37.32 kilo (ex-gin), equivalent to 72.96 cents per pound. This is still below the record level of 3,600 rupees reached two weeks ago but dramatically higher than a month ago. .
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A series of cotton players continued announcing a crop of 9 million Pakistani bales (170 kilos each), compared with official estimate of 10 million bales and an expected consumption of 12 million bales. .
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Largest cotton processors would have already ordered 600,000 to 700,000 bales from foreign countries, according to domestic sources. .
Date:11/11/2003
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