Cotlook Daily Internet Service

Copyright Cotlook Limited (Disclaimer Notified)

Liverpool Report January 7, 2015

Prices
A moderate upturn in trading activity is in evidence today,
as spinners persist in covering their nearby shipment requirements, encouraged by yesterdays setback to futures.
US and West African continue to figure prominently in turnover (including at mill purchasing tenders in Taiwan). Business in Indian and Brazilian appears to have been of a
more sporadic nature. Further merchant purchases have
been arranged at various African Franc Zone origin sales
tenders.

COTLOOK INDICES

7-Jan

US cents per lb CFR m ain Far Eastern ports

Cotlook 2014/2015 A Index: 68.25

Ivory Coast BEMA

66.00

Burkina Faso RUDY

66.00

Indian medium grade

69.00

MOT Midd
Memphis/Eastern Midd

69.75
70.50

-0.50

India
Interior asking rates for Shankar-6 have ruled steady today, to be placed at Rs. 32,850 per candy,
ex-gin, over Rs. 300 above the break even lint equivalent of the MSP, by our calculation. At the
prevailing exchange rate, todays market price is equivalent to around 66.00 US cents per lb.
Nationwide, daily seed cotton arrivals have recovered to over 200,000 lint equivalent bales (170
kgs).
2014/15 crop Shankar-6
Prices on all months of the MCX futures plat(Rs./candy, ex-gin)
34,200
form have lost ground. Nearby contracts on
33,800
ACE have moved lower, while those further for33,400
ward advanced.
33,000
32,600
By January 6, the total volume of seed cotton
32,200
procured by the Cotton Corporation of India was 31,800
equivalent to 4.06 million bales of 170 kgs. The
31,400
MSP equivalent
31,000
largest amount purchased was from Telangana.

Pakistan
Subdued conditions have prevailed in the local cotton market today. Mills have lately remained
very cautious buyers and traded turnover has fallen.
The bigger textile groups have already bought the bulk of their requirements, with a share of
around 11.5 million bales of domestic cotton bought. Buyers have become more selective and
have been looking at import possibilities of foreign growths at lower prices. Meanwhile, hand-tomouth mills have continued to buy locally, as per their regular requirements. Ginners have generally accommodated buyers at current prices.
Medium and better quality cotton has traded unchanged at around Rs. 4,900/5,200 per maund, ex
-gin, in the local cotton market today, while lower and very low quality cotton has commanded Rs.
3,300/4,700 per maund.

Turkey
Spinners have begun the New Year in cautious mood. Customary users of US cotton continue to
lack the confidence to commit themselves to purchases while the outcome of the anti-dumping investigation remains unknown. Alternative machine-picked origins, such as Greek and Brazilian,
are considered too expensive and/or unsatisfactory in terms of quality. No new business has been
confirmed in Turkmen, which had enjoyed some demand before the year-end. For the time being,
mills are buying from the domestic crop, but in hand-to-mouth fashion. Desirable qualities from
Urfa (described as 31 colour, Standard 1 Extra) have been available at around TL 3.50 per kilo
(just over 68.00 US cents per lb).