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Domestic prices of cotton still down y-o-y
Sep '09
In August of 2009, the average price of China's domestic cotton grade 328 was 13,134 Yuan per ton, down 1.2 percent from the previous month, and 3.3 percent year on year.
The state began to release state cotton reserves in May in order to stabilize cotton prices and ensure adequate cotton supply to the textile industry.

On August 14, the State announced release of another 600,000 tons of cotton reserves in addition to 1.523 million tons released earlier. As of August 31, trade volume reached 1.526 million tons.

Under the influence of release of state cotton reserves, cotton spot prices in the future market fell after a rise in earlier months. The Cotlook A index stood at 64.26 cents per lb, for equivalent of domestic cotton grade 328 in August, down 0.8 percent from the previous month and 17.7 percent year on year.

Fibre2fashion News Desk - China

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