Daily Market Report : March 10, 2010
INDICATIVE FIXED BALE PRICING OPTIONS - March 10, 2010
| 2010 | 2011 | 2012 |
|---|---|---|
| 78.33 | 74.06 | 75.67 |
| $433 | $427 | $453 |
All cotton contract offers based on Middling 1-1/8" (31-3, 36) 3.5 - 4.9 Mic, 500 lb/Bale, Ex-Gin
14 Day Payment Terms
All prices quoted are exclusive of GST. This report is prepared from information supplied to Queensland Cotton. No responsibility is accepted by Queensland Cotton or its employees for the accuracy of the report. Basis quotes may differ from the cash price basis equivalent.
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Cotton was down again today, although much more sharply that the previous night. While the buyers have become more patient for a dip, sellers have become a bit anxious. Also assisting the decline were the outside markets. Grain markets fell, although not as sharply as cotton. There was also a reduction in the old crop to new crop inverse last night. December was actually stronger on the day and July fell driving the negative spread down 202 points. All eyes are on the WASDE report tonight with interest on whether the USDA with show a smaller crop in China which will further tighten ending stocks. How much of this expected reduction has already been factored in will be answered tonight.
Markets are seemingly now in watch and wait mode looking for added clarity on the EU debt mess and ahead of key data releases due on Thursday, with China's PPI, CPI, FAI, Retail Sales and IP all due for release. Closer to home the RBNZ announcement and Aust Employment data for February are also released tomorrow. Aud/usd had a minor pullback in offshore trade overnight to 0.9056 and then recovered setting itself up for a break of 0.9140/50 resistance over coming sessions. Through here the targets become 0.9200 and then the top of the short term trend channel at 0.9280.