DAILY MARKET REPORT Thursday 25th March 2010 "ICE" COTTON FUTURES INDICATIVE PRICES (exclusive of GST) Namoi Cotton Commodities Close Change High Low 2010 2011 (indicative prices, excl GST, per tonne) May-10 8141 -148 8296 8090 ACash 14 Day $421 $436 Grade Brisbane N'castle Pt Kembla Jul-10 8226 -142 8360 8176 USc/lb (14 day) 75.75 75.31 2009/2010 Dec-10 7457 -81 7545 7423 Daily Pool $424 $439 APH2 $220 $220 $220 Mar-11 7561 -79 7614 7551 FOB basis offerings may not reflect the cash equivalent APW1 $200 $200 $205 May-11 7601 -65 31-3-36 / 3.5-4.9 Mic. AUH2 $195 $195 $200 Jul-11 7652 -39 227Kg Bales, FOB Ginyard. F1 Barley $200 $190 $180 COTTON COMMENT Futures turned sharply lower today paralleling declines in many key SOR $195 $195 Estimated Vol: 16,411; 09/10 A Index: 87.20 (+0.30) commodities as the greenback rallied to ten-month highs, overwhelming 2010/2011 the commodities market. Nearby May led the slide in cotton declining as AUSTRALIAN DOLLAR much as 190 points; it lifted slightly to settle at 81.41, down 148 points. APW1 $215 $215 $218 Funds and specs were the main sellers, as closely watched technical Todays Spot 9075 Dwn 115 points were breached. Scale-down trade buying on price fixations F1 Barley $175 $170 $165 2010 9005 -70 cushioned the slide. Most commodities finished on the negative side in SOR $195 $195 response to the stronger dollar. The USD strength was really more of a 2011 8635 -440 reflection of the Euro’s weakness though as continued worries that the WW G'windi Warren 2012 8345 -730 International Monetary Fund may have to bail out Greece, compounded Chickpeas 2009/10 $380 $380 $380 with a downgrade in Portugal’s debt by Fitch Ratings, pummelled the value AUD COMMENT of the Euro. Soybeans and wheat declined 0.8% and 0.2% while corn rose Chickpeas 2010/11 $380 $380 The AUD was weaker yesterday after a downgrade to Portugal 0.6%, despite the stronger USD. The USDA weekly export sales data, due knocked risk aversion currencies lower overnight whilst sending Please contact your local Namoi Cotton tomorrow, is expected to show Upland sales of about 160,000RB, the USD rallying across the board. With the technical picture for representative for all Ex-Farm pricing according to a survey of US merchants. Sales the previous week reached AUD/USD looking increasingly bearish combined with the 263,200RB, and the 4-week average stands at 160,400RB. Shipments Aussies inability to trade through the important .9250 resistance GROWER NEWS have been running slightly ahead of the weekly volume necessary to reach level, the odds are increasing for a more substantial pullback Module/Bale Loans 9.14%. P&D exchange rate for March is the USDA’s 12.0 million bale projection. The 4-week average covering all towards major support. The US dollar rallied broadly overnight, pushing the Euro to a 10-month low after a rating downgrade on cottons stands at 292,400RB. A total 6.19 million statistical (480 lb.) bales 0.8877. Namoi Capital Stock 0.45 have been shipped thus far. A weekly average 279,400RB are needed to Portugal added to worries about debt levels and growth in the CONTACTS reach the USDA projection. Euro zones smaller countries. Fitch Ratings lowered Portugal's sovereign credit rating to AA minus from AA, with a negative Macquarie/Lachlan Jaimee Carrigan 02 6888 9611 outlook, which coupled with concerns about debt-stricken Greece May -10 COTTON OPTIONS Namoi Ross Brown 0429 903 047 a day ahead of an EU summit had investors again weighing the sustainability of the Euro zone recovery. In late New York trading Calls Prem A/Bale Puts Prem A/Bale Pedr Harvey 0429 920 980 the Euro was down 1.3% at $1.3313, suffering one of its biggest one day declines since early January. Against the JPY the dollar 79 356 $19.61 79 115 $6.34 Gwydir Skye McDonald 0407 434 104 was 1.9% higher at 92.15 after touching a session high around 80 292 $16.09 80 151 $8.32 MacIntyre Paddy Martin 07 4671 6910 92.23 yen. On Wall Street overnight, stocks fell as the cut in Portugal's debt rating prompted profit-taking after a recent rally 81 237 $13.06 81 196 $10.80 Mungindi/West Qld Owen Webb 0427 790 056 that had driven the Dow Industrials and the benchmark S&P 500 82 190 $10.47 82 249 $13.72 Darling Downs / CQ Les Perkins 0427 001 289 to 18-month highs on Tuesday. The Dow Jones Industrial average declined 52.68 points, or 0.48% with the S&P 500 83 149 $8.21 83 308 $16.97 GS & Mkt Manager David Lindsay 02 6790 3066 declining 6.45 points, or 0.55%. 84 116 $6.39 84 375 $20.66 Trading Manager Clinton Uebergang 0427 903 075 DISCLAIMER:While the material (derived from sources believed to be reliable) contained in this report has been compiled in a diligent and accurate manner and is given in good faith, neither Namoi Cotton Co-Operative Ltd or Namoi Cotton Commodities Pty Ltd, nor any individual involved in the preparation of this report, accepts any liability in the event of error, omission or any consequences arising from its use. This material has been prepared for general circulation and does not have regard to the particular circumstances or needs of any specific person.
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