Recently, cottonseed price in Baoding, Hebei province falls substantially, unginned cotton price is also reduced, and acquisition has clearly decreased. Lint price follows the downtrend due to lack of purchases interest from downstream sectors.
As of November 26, unginned cotton price was at 2.66 yuan per kg, down 0.30 yuan from the previous week. Local cotton enterprises cut purchase price of unginned cotton since cottonseed price dropped substantially.
Acquisition volume also drops, general cotton enterprises only maintains their daily acquisition size with a few hundred kilograms.
Lint market continues to be weak, sales are sluggish, and most cotton enterprises hold cotton stock over 100 tons. As funds are fully occupied, some enterprises have suspended acquisition of unginned cotton. Some other enterprises expect to sell cotton around Chinese Spring Festival, which will begin on February 7, 2008, in hope that cotton price will go up by then.
Fibre2fashion, News Desk - China
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