Subject to the global economic recession, cotton price has kept going south recently. From Sept. 25 to Oct. 7, The price of Cotton 328 dropped from RMB12,926/MT to RMBxxxx/MT (for delivery to textile mills), down xx%. Meanwhile, new cotton procurement price index dropped from RMB11,604/MT to RMBxxxx/MT, down xx%.
The price of Cotton 328 averaged RMB13,047/MT (for delivery to textile mills) in Sept., down 3.93% from the month before, the biggest slump in three months. The Sept. price dropped 5.9% on the year-on-year basis, the biggest year-on-year slump in five months. Adjusting for currency value change, the Sept. price dropped 0.4% from the month before but added 1.15% on the year-on-year basis.
The new cotton procurement price index in Sept. was RMB11,870/MT, a drop of 8.2% on the year-on-year basis. Adjusting for currency value change, the index dropped 1.12% on the year-on-year basis.
According to the national cotton price monitoring system, seed cotton procurement price was RMB5,440/MT in early Sept., down 6.85% on the year-on-year basis.
Cotton production cost is estimated to add RMB3,000/ha. in 2008 over last year. The cost is about 30% more than last year. Cotton price is presumed to drop by a big margin upon new cotton harvest, which may dampen farmers’ initiatives in cotton production.
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