Season's see-saw cotton prices continues

Cotton prices have continued to see saw.
Cotton prices have continued to see saw. Contributed

ON MONDAY night cotton made small gains in two-sided action that left Dec up six points at 71.84.

Cotton was trading higher on Tuesday morning but a sudden spike in the USD sent values tumbling.

However, after falling by more than 100 points, cotton prices gradually recovered over the balance of the US session.

Cotton-specific news was light, with traders reporting a combination of mill fixations and pieces of new business.

Light rains were recorded across Northern Alabama and in the Carolinas overnight and West Texas is still under threat of showers later this week.

The latest US Crop Progress and Conditions report showed the crop is now 21% harvested.

In other news, the National Development and Reform Commission of China announced the 894,000 tonnes of TRQ for 2013 as mandated in the WTO agreement.

Meanwhile commentators suggest it seems cotton is content to wait for Thursday's USDA S/D figures.

In the interim, the harvest is likely to quicken and traders will be keen to see if Friday's classing data shows an improvement in quality after several weeks with low "tenderability".

Commentators also suggest it appears US growers are content to wait for higher prices to fix or place cotton into the government loan and wait for better prices, adding this strategy only had limited success in the past.

Topics:  columns commodities cotton markets namoi cotton

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