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Dispatches of cotton from fields falls drastically
25
Nov '08
According to a survey done by the China Cotton Association, as of October 30, the average seed cotton-picking progress of surveyed farmers was 88.5 percent, representing a 2.2 percent increase over the same period last year.

However, cotton-processing enterprises were cautious towards new purchases, due to continuous fall in prices since the beginning of the new cotton season. It was even difficult to sell cotton in some areas and cotton farmers appeared discontent with the situation.

As of October 30, average dispatches of cotton from fields of surveyed farmers had reached only 33 percent, a year-on-year drop of 24 percent while on the other hand average delivery price in October was Yuan 5.22 per kg, down Yuan 0.21 from September and Yuan 0.75 or 13 percent from the same period last year.

Sales of cotton lint had come to a near standstill in October as prices continued to fall as some enterprises had suspended purchases and adopted a wait-and-watch attitude, but procurement by the government made good progress in Xinjiang province.

According to the monitoring of China Cotton Association, nearly 40 percent of surveyed ginning enterprises had not started their cotton purchase in the new season while 10 percent of those surveyed had stopped new purchases due to business losses occurring from daily drop in prices.

The average purchase price by processing enterprises was Yuan 5.23 per kg or Yuan 11,391 per ton (not including processing fees), down Yuan 0.25 per kg from September.

Fibre2fashion News Desk - China


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