Germany : Price of extra-fine lowers as upland cotton hikes

Extra-fine cotton prices were lower in the first three months of 2007/08 than during 2006/07. The Cotlook quote for American Pima averaged 111 cents per pound between August and October 2007, compared to 124 cents per pound over the same period last year.
As upland cotton prices rose, the ratio of prices between the Cotlook quote for American Pima and the Cotlook A Index declined from 2.12 in the first three months of 2006/07 to 1.64 in the first three months of 2007/08.
This increase in price competitiveness of extrafine cotton compared to upland cotton may give a boost to sales of extra-fine cotton. Exports of extrafine cotton are projected to rise by 18% to 378,000 tons this season. Almost all the increase in exports is expected to come from the United States, Egypt and Sudan. U.S. Pima exports are forecast at 169,000 tons or 15,000 tons higher than last season, due to a record crop.
Egyptian exports of long staple cotton are forecast at 80,000 tons, or 25,000 tons higher than last season due to increased production. Egyptian ELS exports are expected to remain stable around 30,000 tons despite a projected production decline to 41,000 tons (-24%).
Despite an expected sharp drop in Barakat production in Sudan to 15,000 tons (-51%) expected in 2007/08,
exports are expected to increase to 40,000 tons (+16,000 tons) due to the large unshipped stocks remaining at the end of 2006/07.
Exports from other producing countries are expected to decline from 65,000 tons in 2006/07 to 59,000 tons in 2007/08 due to lower projected exports from Israel, Tajikistan, Uzbekistan and China (Mainland).
As the sum of production and imports by producing countries is expected to exceed the sum of consumption and exports by the same countries, ending stocks of extra-fine cotton in producing countries are projected to decrease to 221,000 tons in 2007/08 (-8%).
SALES OF EXTRA-FINE COTTON:
World extra-fine cotton export commitments for 2007/08 rose by an estimated 36,000 tons between mid- August and mid-October and reached 179,000 tons, accounting for 47% of projected exports.