November 7, 2012
China bought two million tonnes of cotton for reserves
China had acquired 1.99 million tonnes of fresh cotton for national reserves.
Such a purchase volume accounts for nearly 30% of the country's cotton output in 2012. The association earlier predicted that China would yield 6.96 million tonnes of cotton this year.
The Chinese government has implemented the cotton purchase and reserve plan since the beginning of September.
The state stockpiling program has played an important role in propping up domestic cotton prices. However, as the purchase volume is increasing, the cotton market will face huge pressure from reserve cotton selling next year, analysts say.