China Buzz

Import quotes surged .50 to 1.00 cents/pound on the strength of ICE gains. Indian styles were up .75 cents/pound. Domestic lint prices were higher as well, with particular price strength noted in Shandong and Henan. Offtake was decent around the country today as well as for the entire trading week. Price strength was also found at the ZCE with increases of 55 to 85 yuan/ton as volume surged to more than 17,400 contracts. May added 80 to close at 12,090 yuan/ton. CNCE E Forward Market contracts were mixed with spot month March dropping 132 and the main month May adding 35 to finish 12,243 yuan/ton. The scheduled reserve procurement today was set at 19,700 tons. Cumulative reserve purchases for the 2008/09 marketing season are reaching 2.6 million tons with about 1.4 million tons from Xinjiang and 1.2 million tons from the inland provinces.

China’s yuan enjoyed its fourth straight day against the dollar ending the trading week up .15 percent to 6.8277.