In Egypt, Cotton prices sharply rebounded last Friday in New York, boosting prices in Pakistan and China. After the decline experienced in the previous weeks, cotton prices are now expected rebounding in the first quarter when cotton mills will be forced covering their needs. After further decreasing at the start of last week, US futures sharply rebounded on Friday. Opening at 69.50 cents per pound, key March rose no less than 242 points to a two-week high of 71.92 cents, before closing at 71.29 cents, up 196 points. .
May 04 also increased by 196 points at 72.32 cents. .
Such a rally was not experienced for a large number of days and could be a first sign of a possible new surge in prices in January. .
After rising to about 82 cents per pound by October 24th, US futures progressively declined to below 70 cents per pound by the end of November.With year end holidays now looming, the markets are not expected showing more volatility in the near term. Last Friday rebound was mainly due to speculative buying by US funds, anticipating a new rise in prices in the next year
Arrivals of the new crops in Northern Hemisphere usually depress prices in November and December. With less quantities arriving on markets in January, prices could rebound. .
Cotton consumers could also be forced purchasing more fibers in order to cover their short-term needs, in addition. With cotton prices falling in November, textile mills preferred waiting for lower quotations. Cotton stocks could be relatively low in textile plants, as a result
The US market would remain in the range of 68 to 73 cents during the coming two weeks, according to cotton expert O.A. Cleveland, from Mississippi State University
US export sales were good in the week to December 11th with total sales up 38% from the prior week at 207,500 US running bales (RBs). Sales to China were 53,400 RBs while shipments to the same destination reached a high level of 92,500 RBs.After US futures sharply rose on Friday, prices immediately rebounded in China and Pakistan. In China, prices rose between 50 and 120 yuan per ton on the e-market on Monday while no more falling on the CNCE (China National Cotton Market)
After adopting a wait-and-see attitude in November, textile mills try now covering their needs ahead of a very long holiday period
Lack of good quality cotton is also stimulating prices on the higher end of domestic markets. .
Xinjiang is unable rapidly delivering its crop as a result of usual difficulties with railways. Deliveries would not be completed before next June, according to local sources. .
Xinjiang output would not increase in the coming season, in addition, as cotton areas would not being expanded although prices sharply rose in the past twelve months. .
The recent rebound in prices of polyester staple fibers is also limiting the decline in cotton prices. .
With large quantities of imported cotton now arriving at China ports, prices could decline in the coming weeks, however.In Pakistan, cotton prices sharply rebounded on Saturday in line with New York rally. The official spot rate was raised to 3,125 rupees per maund (ex-gin) by the Karachi Cotton Association (KCA) after further falling in the past week
Cotton production could finally be between 9.5 million Pakistani bales of 170 kilos each and the official estimate of 10 million bales, slightly higher than anticipated a few weeks ago by domestic markets. .
Imports will surge, however, partly due to the low quality level of Pakistani cotton. .
India is expected exporting about 200,000 bales (170 kilos each) to Pakistan this season on total exports of 700,000 to 1 million bales.
India usually exports no more than 100,000 bales while importing 2 million bales of good-quality cotton. .
Import volume should be low this season since import prices are relatively higher than domestic prices.In Turkey, prices did not change in the week to Thursday with Standard-1 Average still at 2,425,000 lira per kilo. Domestic prices remain below import prices.