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China starts releasing cotton from state reserves

2013-12-3

The China National Cotton Reserves Corporation (CNCRC) has started releasing cotton from the state reserves.

The floor price has been fixed at 18,000 yuan per ton for standard grade of cotton, and the first released reserves were from 2011 crop.

The release price of 18,000 yuan per ton is about 50 percent higher than this year’s average price so far. In addition, the release being from 2011 crop means that the cotton would not be of very good quality.

Meanwhile, China’s cotton purchase and storage policy is continuing this season at reserve price of 20,400 yuan per ton.

China’s cotton stocks are estimated at about 10.3 million tons, according to the latest forecasts from the International Cotton Advisory Committee (ICAC), which equals around 40 percent of global cotton production last year.

Source:Fibre2fashion
 
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