May 30, 2012
China's spot cotton prices continue to drop last week
For week ending May 25, the spot cotton prices in China remained on a declining state tracing the drop of futures prices, the China Cotton Association said in a weekly report on Tuesday (May 29).
Meanwhile, the international cotton prices kept falling amid worries over Greece's potential exit from the euro zone. The import cotton prices further expanded their spread with domestic prices and were over RMB4,300/tonne (US$677.48) lower than prices of homegrown cotton.
The national cotton price index CCIndex 328, which indicates the average price of standard lint in China, accumulatively fell by RMB153/tonne (US$24.11) to RMB18,853/tonne (US$2,970.36) last week and hit the lowest point since March 2011. The most actively traded September cotton contract on the Zhengzhou Commodity Exchange dived 1.52% to end at 18,765/tonne.
In response to persistent decline of cotton prices and rising pessimistic sentiment in the industry, the association reiterated that the Chinese government had adequate ability to stabilise the cotton market.
