• Wool prices have risen this week in US$ and euro terms over a new increase of the Australian dollar which has been boosted by a possible rise of benchmark interest rates in December.
• Viscose prices have continued slightly sliding in China, triggering a reaction from several producers. .
US Cotton Futures : Cotton futures finished the Friday session up 60 to 65 points, adding to triple digit gains from Wednesday. The price of Dec15 cotton increased by 4.1% from last Friday, gaining 259 points, and closing at its highest daily close since November 2. The USDA reported export sales of 313,100 RB during the week ending Nov 19, including 7,500 RB of Pima. Upland sales of 305,600 RB were the largest since the week ending October 1, and increased by 53% from the week before. The Cotlook A Index was 125 points higher to 69.80. ICE reported that there were 63,958 certified bales in delivery warehouses on Nov 25, with 4,202 new certs and only 15 decertified bales. There were 1,460 bales awaiting review. USDA put the AWP for this week at 46.89 and dropped the LDP/MLG to 5.11, down .01 from the 5.12 last week.
Although many cotton exporters’ shipments have been affected thus far in 2015-16 by weak demand from China, the most notable impact has been felt by Australia, according to the latest cottonA report released by the US department of agriculture (USDA).
Over the previous four seasons, Australia had shipped nearly two-thirds of its exports to China. However, since the harvest started for the 2015 crop, Australia’s exports as a share of the crop are at a 10-year low, largely on very weak import demand from China.
Similarly, Australia’s cotton shipments to nearly all other major markets are also down.