By admin       2018-01-22

Cotton prices look set to remain strong, and volatile, for some months yet, Rabobank said � although a forecast of price falls in the second half of 2018 was contested by another commentator. The bank said that strength in cotton prices, which have hit eight-month highs in New York, �in the short term� will remain�, supported by the high level of so-called �on-call� sales � that is, fibre purchased by mills for pricing later against futures values. The net level of on-calls sales, at more than 128,000 contracts as of January 5, reached its highest level since 2008, in an indication of mills expecting lower cotton prices ahead. But with the bulk of the on-call sales held against nearby contracts - and requiring price fixing at the latest against July futures, the last old-crop lot � the strategy has left mills vulnerable to a squeeze by funds

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