Turkey (80,800 RB); China and Thailand were the primary buyers of Upland cotton. It is noted that Chinese mills did make purchases after a month of being all but absent. The primary buyers of Pima were Pakistan (1,700 RB); India and China.
Export shipments were 173,800 RB, totaling 168,200 RB of upland and 5,600 RB of Pima. The primary destinations for Upland were Turkey (46,900 RB); China and Mexico. Primary destinations for Pima were Pakistan (3,300 RB) and Indonesia.
As noted, the increasing size of the Indian crop will weigh on prices. This pressure will last well in 2008, but it one of the very-very few bearish signs the market is facing. China will continue to look to India first for its import needs as Indian merchants will see that their cotton stocks are sold-regardless of price.
Nevertheless, the grain, oilseed, US dollar and most other commodity prices will carry cotton higher. The Yew York market will be volatile as we get closer and closer to first notice day for the December contract.
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