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China Calms Down Rising Cotton Price
China will auction about 200,000 tons of cotton reserve around October 1 to calm down rising price, said an official with the National Cotton Trade Market.
Experts warned cotton growers not to anticipate extraordinarily high prices and stow their produce.
Although China's cotton production is expected to fall short of demand this year, the government will use its huge cotton stocks to balance supply and demand, said Zhu Lanfen, director of the Enterprise Reform Department of the State Textile Industry Bureau.
Insiders estimate China has about two million tons of cotton in stock.
China produced 3.1 million tons of cotton yarn in the first half of this year, up 16.8 percent year-on-year.
A national cotton conference hosted by the All-China Federation of Supply and Marketing Co-operatives in August decided that a suitable cotton price will be around 8,600 yuan (about 1,036 U.S. dollars) per ton. It is higher than last year's suggested cotton price of the co-operative at 7,600 yuan (about 915.7 U.S. dollars), and also about 10 percent higher than last year's actual purchasing price at about 7,800 yuan (about 939.8 U.S. dollars) per ton.
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