According to the monthly cotton report from China's National Development and Reform Commission September 23, China's cotton harvest this year set to have an abundant harvest with weather friendly in main cotton producing areas.
Cotton prices in domestic and international markets Declined with higher cotton production both at home and abroad. Half of the new crop harvest completed and seed cotton price slacked. Cotton import cut down in quantity, and yarn production continued to expand.
The report said, based on the latest estimate, the whole country's cotton production was expected to reach about 6.50 million tons, up 800,000 tons from last year. Half of the new crop harvest already finished.
By the end of September, the procuring price for seed cotton grade 3 in domestic markets fell from the original 5.4-6 yuan per kg to 5.28 yuan. Seed cotton price for Xinjiang cotton grade 2 dropped from 5.6 yuan to 5.1 yuan per kg.
In September, the average landed mill price for standard grade in domestic market was 13948 yuan per ton, reducing 39 yuan from last month, a drop of 0.3 percent. On September 30 the price was offered at 13526 yuan per ton, falling 3.7 percent from 14043 yuan on September 1.
The futures price of December contract on Zhengzhou cotton exchanges settled at 13666 yuan per ton, 669 yuan below last month, a drop of 4.7 percent. December contract price on national E-exchanges quoted at 13686 yuan per ton, less 447 yuan from last month, a drop of 3.2 percent.
Quotation at Asian maim ports was 57.19 cents per pound, less 0.1 cent than last month, falling 0.2 percent.
Taking account of 1 percent tariff, the import cost exchanged into RMB was 11838 yuan per ton, 2131 yuan below home crop; to calculate the price against floating tariff, the import cost exchanged into RMB was 13152 yuan per ton, 817 yuan behind that in domestic price.
Fibre2fashion, News Desk - China
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