The central government instructed state-run cotton reserve warehouses to on Aug. 18 to purchase 300,000 MT cotton in Xinjiang at a price of RMB13,400/MT and 150,000 MT in other provinces at a price of RMB13,600/MT.

This decision will both enhance the government’s capability to regulate the market and solve some cotton companies’ problem of tight working fund. The government’s procurement prices also help prop up market procurement price.

However, procurement has progressed slowly, because farmers anticipate higher prices. By Aug. 25, the reserve warehouses procured only 65,800 MT cotton, of which 16,800 MT were procured in Xinjiang. It seems that the reserve-oriented procurement is hard to accomplish.

China’s cotton stock is below 1 million MT at present.

List

News Briefs 1

Procurement of 450,000 MT Cotton for State Reserve Hard to Accomplish 1

Textile Mills Unable to Accept High Cotton Price 2

Estimates of Cotton Consumption in 2007/2008 3

Garment Consumption Went Up in July 6

PPI & CPI in July 7

Textile Industry’s Output Value in July 9

Weather & Cotton Conditions 10

Price Trends: 11