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Cotton prices rise but fall in late September

Oct '08
In September, most cotton producing areas saw fine weather and cotton harvesting work had begun at a good pace. Main cotton producing regions had experienced cold rainy weather during cotton growing period this year, so cotton maturing time was delayed from the same time of last year.

This resulted in a delay of cotton arrivals in the markets by more than 15 days and was also accompanied by unwillingness on part of farmers to sell their crop due to the drastic decline in cotton prices.

In September, inland purchase price of seed cotton in grade 3 was 5.86 Yuan/kg, a year-on-year increase of 0.34 Yuan/kg or 6.3 percent while purchase price of Xinjiang seed cotton in grade 3 was 5.44 Yuan/kg, a year-on-year increase of 0.16 Yuan or 2.9 percent.

Looking at the price movements of September, purchase price of seed cotton displayed a trend of moving up earlier but falling down later. In early September, seed cotton price was higher, price for inland seed cotton in grade 3 was 5.94 Yuan/kg and for Xinjiang seed cotton in grade 3 was 5.60 Yuan/kg.

But due to influence of price drop in inland lint and seed cotton, purchase price for seed cotton continued to decline and by the end of September, price for inland seed cotton in grade 3 was 5.78 Yuan/kg while purchase price for Xinjiang seed cotton in grade 3 was 5.30 Yuan/kg.

Fibre2fashion News Desk - China

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