Cotton price downtrend stops as harvest season nears end
Source: Fibre2fashion Date: 2006-11-23
According to the monthly cotton report by China National Development and Reform Commission (NDRC), new cotton harvest was approaching its end in October, and seed cotton price stopped declining into a steady trend.
The report stated, since October, main cotton producing areas have entered into the stage of large-scale picking and procuring. Seed cotton harvest reached 93.4 percent of the expected output by the end of October.
According to monitor data, local seed cotton procuring price slumped in early October, but the drop slowed by mid October, and gradually entered into a stable state by the end October, mainly retained at 5.1 yuan per kg (12000 yuan per ton for lint).
Procuring enterprises have cautiously stepped into the market, and procuring progress is behind last year. By the end October, the quantity of procured new cotton totaled at 1.64 million tons based on the loan issued from the Agriculture Development Bank, down 6.3 percent from the same time last year.
Adversely affected by ample cotton harvest in chief producing countries and price slump in international market, China local spot price dropped in early October but recovered slightly by mid October. Average inland mill price for standard class was 12884 yuan per ton in October, down 7.6 percent from last month.
Due to the import cost exceeding over home growth, China cotton imports further reduced in October. China imported 85,000 tons cotton in October, down 57 percent against a year-on year basis according to the Customs statistics.
China’s textiles and apparel exports reached US $12.35 billion in October, rising 22.5 percent over the same period last year.
