Cotton futures at ZCE market continued its downtrend on Tuesday. The most active contract CF701 opened at 13370 yuan and settled at 13340 yuan, slumping 120 yuan from the previous session, following a trade range between 13375-13305 yuan.
Trade volume expanded to 8558 lots and open interest stood 12366 lots.
December cotton futures at Nybot fell sharply Monday on spec and fund sales, under the heavy pressure from Nybot, ZCE futures stayed in a weak consolidation after jumping lower at the open, and finished in negative territory.
Market trading was active, the leading contract CF701 showed a sign of rolling into the forward contract CF705.
According to a Cotton Outlook press release Tuesday, China's 2006-2007 cotton crop expected to be at 6.6 million metric tons, up against previous estimates.
Production estimate increase will likely translate into a commensurate reduction in China's import requirement.
Cotton Outlook estimates 2006-2007 cotton imports at 3.9 million tons, down from 4.2 million in 2005-2006.
On October 31, from the domestic cotton market, China national cotton index Cncotton A quoted at 13268 yuan per ton, down 7 yuan than the previous day; Cncotton B offered at 12788 yuan per ton, 29 yuan lower from Monday; HZCE cotton in grade 229 listed at 13200 yuan, down 25 yuan from the previous day.
On domestic textile fiber market, polyester staple fiber quoted at 11300 yuan per ton, same as Monday; and Rayon staple fiber listed at 14050 yuan, equal to the previous day.
On domestic yarn market, OE10S finished at 12975 yuan, down 10 yuan; C32S priced at 18815 yuan, less 10 yuan comparing to the prior day; JC40S quoted at 23720 yuan, similar to yesterday; TC45S closed at 18030 yuan, same with the day before.
One lot is equivalent to 5 metric tons.
One US dollar equals about 7.90 yuan.
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Fibre2fashion, News Desk - China
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