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Experts opine on state cotton reserves auction price
25
Jul '11
How much more will cotton price decline further? This is a question on the lips of anyone and everyone involved in the cotton-value chain.

Cotton prices are declining with passage of each week in the last five months. Industry analysts opine that the purchase price of state reserves cotton should be around 19,800 Yuan per ton.

Although the pain experienced by textile industry has led to lower cotton demand, the overall industry still shows a healthy development.

Moreover, in case cotton price declines further and costs of planting increases, farmers will be reluctant to sow cotton next year.

In view of the above, some companies have started to establish some strategic long positions in cotton futures at a price below 22,000 Yuan per ton.

Fibre2fashion News Desk - China

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