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Forestry & Paper: Textile Fibre Insights

Key message: Cotton up 2%, while VSF is flat. Cotton is now trading at a 5% premium to VSF. Spot DP is USD 1,140/t. VSF inventory days tick up to 26.5, while the average op. rate declines further to a decade low of 55%. VSF theoretical profit improves but still in the red at -USD 174/t (VSF/DWP spread -2% YTD).

Forestry & Paper Textile Fibre Insights

Key message: Cotton jumps 7%, while VSF is down 2%. Cotton is now trading at a 2% premium to VSF. Spot DP stable at USD 1,220/t. VSF inventory days tick up to 23.5, while the average op. rate declines further to 65%. VSF theoretical profit further in the red at -USD 252/t (VSF/DWP spread -6% YTD).