Cotton futures at China ZCE futures market mostly fell Thursday. The most active contract CF701 opened at 13320 yuan and settled at 13325 yuan, 55 yuan below the previous session, following a trade range between 13295-13290 yuan.
Trade volume limited to 2794 lots and positions stood 12386 lots.
China Cotton Association (CCA) predicted in August that China's cotton output in the 2006-2007 cotton year would reach 6.34 million tons, setting a highest record in the history.
The actual output would possibly surpass the estimation with weather conditions friendly in major cotton growing areas in September.
Currently the procuring price of raw cotton mainly ranges from 5.0-5.2 yuan per kg, down from 5.6 yuan in September.
CCA pointed out it would be a fair price for cotton enterprises to buy in at 5.0 yuan perkilogram (63 US cents).
On domestic cotton market, China national cotton index Cncotton A quoted at 13279 yuan per ton, down 7 yuan than the previous day, Cncotton B at 128554 yuan per ton, 1 yuan below yesterday.
Polyester staple fiber quoted at 11300 yuan per ton, down 100 yuan a day, and Rayon staple fiber at 14270 yuan, falling 10 yuan from last session.
HZCE cotton in 229 grade offered at 13510 yuan, down 22 yuan.
One lot is equivalent to 5 metric tons.
One US Dollar equals about 7.90 yuan.
Fibre2fashion, News Desk - China
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