Late rally counters slow start

COMMODITY markets were mixed to mostly lower overnight on Tuesday, with WT Crude giving back most of its gains from the previous day.

However, grains and oilseeds were higher, lending support to cotton.

Cotton was dominated by Dec/March spread trading.

Overall spread vol represented close to 58% of total vol.

Prices started the overnight session lower but turned generally higher throughout the session and even rallied late.

Futures vol was estimated at 27,452 contracts as compared to Monday's cleared vol of 23,751.

Traders continued to report export inquiries from across Asia, with some demand at prices just below the market.

To date they are unwilling to chase prices higher, and producers are unwilling to sell until prices are in the higher 70s.

India reports sharply rising yarn exports, with registrations up 45% in Oct over Sept and double Oct's 2011 figure.

This is further evidence that Indian spinners are benefiting from China's Reserve policies, while Chinese mills are losing international competitiveness.

Topics:  commodities namoi cotton trade

Stay Connected

Update your news preferences and get the latest news delivered to your inbox.