Cotton Price Propped Up by Government’s Cotton Procurement

By CnAgri2013-01-21 12:35:15 Print Due to bumper cotton harvest and substantial imports, cotton stock has swelled this year, exerting a pressure on cotton market price. Thanks to the government’s massive cotton procurement, cotton price is stable at present.
 
By Jan 14, cotton procurement for short-term state reserve totaled 5.6082million MT this year, including 2.468million MT in Xinjiang ,1.7503Million MT in other provinces, including 1.390million Mt  in  key enterprise accounting for 25.02%, 22.06% 16.07%，8.38%and 7.38% of the procurement Volume. in Hubei，Shandong and Hebei, Hunan and  Jiangsuof the nation’s total (Xinjiang and key enterprise excluded) respectively.
 
The procurement price of Grade Three seed cotton went up 0.06% last week over the outset of the procurement and 2.89% over the same period of last year. The average seed cotton procurement in this year is parallel to last year, conducive to stable cotton acreage next year.

     

From “China Cotton Bi-Weekly Market Report”