Cotton futures at China ZCE futures market modestly rose Monday.
The most active contract CF701 opened lower at 13175 yuan and settled at 13265 yuan, 10 yuan higher than the previous session, following a trade range between 13295-13175 yuan.
Trade volume shrunk to 3410 lots, open interest stood 11696 lots.
USDA released its October supply/demand report last Thursday which increased world production to 116.19 million bales from last month's 114.94 million bales, while world consumption was lowered to 120.98 million bales from last month's 122.24 million.
In particular, China's production estimate was increased to 29 million bales from last month's 28 million while ending stocks was increased to 15.14 million from last month's 11.29 million, the USDA said.
Chinese consumption was lowered to 50 million bales from the last report's 51 million bales.
In domestic market, it reported over the weekend that the procuring price offered by one major firm fell another 100 yuan.
Cotton grade 3 dropped to 12700 yuan per ton, grade 2 subdued to 12900 yuan per ton and payment to be made after 20 days of the shipment.
In comparison to the purchasing price of 131000 yuan per ton before the National Day, the price drop already added up to 400 yuan per ton.
News side, Chinese export commodities Fair ( Cantong Fair in short) now official changed into Chinese import and export commodities fair.
From the graph, contract CF701 stayed at low level for three days after creating a new low at 13105 yuan, indicating the market still lacks substantial support.
One lot is equivalent to 5 metric tons.
One US $ equals about 7.90 yuan
Fibre2fashion, News Desks - China
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