Weekly Market Report : November 21, 2008
INDICATIVE FIXED BALE PRICING OPTIONS - November 21, 2008
| 2009 | 2010 | 2011 |
|---|---|---|
| 43.57 | 48.02 | 49.04 |
| $361 | $403 | $424 |
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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| AUSSIE DOLLAR SPOT | INDICATIVE FORWARDS | QLD COTTON SHARES | |
|---|---|---|---|
| 0.6088 | -0.0050 | 2009 | Last Sale: |
| -0.0130 | 2010 | ||
| -0.0300 | 2011 | ||
The economic crisis seemed to be the major cause for the fall again in futures contracts overnight. A deepening recession may be in store with falling equity markets and fund liquidation. A strengthening US dollar put pressure on cotton and saw the AUD drop to a low of 0.6079. Trading volume was up with an estimated 26,800 contracts traded due largely to expiry of the Dec 08 contract. Futures prices are now at the lowest levels we have seen for 5 years although the downward trend in cotton is not out of place with other commodities. All in all its a bleak outlook at this stage with the knock on effect of the global economic crisis putting pressure on mill customers to cancel orders.
The AUD traded a range of 0.6079 to 0.6357 overnight back within range of October lows of 0.6010. The AUD weakened in line with sliding US stocks, soft data and lower oil prices. Trading remains volatile this morning.