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Despite state reserves purchases, cotton prices rise
Jan '12
Despite large quantities being purchased for state cotton reserves, China's main cotton futures contract 1025 has been rising, since it fell to 19,850 Yuan / ton (state set purchase price) in late October.

The contract closed at 21,190 Yuan / ton on January 10, achieving an increase of 1340 Yuan / ton in less than three months.

Total purchase volume of state cotton reserves fell in the first week of January, mainly due to fewer trading days, according to the latest data released by China Cotton Reserves Corporation,

Total purchase registered 173,710 tons in the reported week, a reduction of 133,010 tons or 43.37 percent from the previous week.

In 2011, total procurement of state cotton reserves came to 2.34 million tons, of which 840 000 tons is inland cotton and 1.5 million tons was purchased in Xinjiang.

Fibre2fashion News Desk - China

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