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Cotton prices to scale new highs
Jan '10
Cotton-planting areas in Xinjiang, Shandong, Hubei have gone in to a decline in the current cotton season. According to data released by Dezhou Cotton Association, it expects cotton planting area to be only about 2 million Mu (one hectare=15 mu), the lowest level in 10 year.

The same is the case with other cotton producing regions. Overall output of cotton in China is expected to fall by 10-15 percent in the current cotton season, which means levels of imports will be high, leading to a further flare up in domestic and global prices.

In the 3rd cotton auction conducted by the state in December, cotton prices climbed to above 15,000 Yuan per ton, which set the tone for the next few months. Industry experts expect that 2010 average cotton price is likely to reach 15,350 Yuan per ton.

Fibre2fashion News Desk - China

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