Cotton Prices Plunged 11% In Ten Days.

Cotton prices, which have been soaring since mid September, are temporarily "down". China Cotton Association released 23 data show that, by the futures market crash and other factors, the Chinese cotton price index fell 474 yuan to 27881 yuan / ton on that day, compared with the high point of 31302 yuan / ton in November 11th, ten days or so dropped 11%.

However, in the context of cotton production reduction, the industry believes that the latter cotton market will remain high and volatile.

China Cotton store 23 reported that in November 19th, the national cotton price B index, representing the average price of the standard grade cotton in the mainland, was 28638 yuan / ton, down 8.3% from last week. Beijing's national cotton market Electronics Matchmaking deal January 2011 average price of 27143 yuan / ton, a week down 11.8%.

Behind the "great reversal" of cotton prices is national regulation. policy Gradually improved. In order to stabilize cotton prices, from August 10th to October 22nd, the state departments concerned put in 1 million tons of cotton reserves. In October, the state Development and Reform Commission And other departments also made a special trip to Xinjiang to coordinate Xinjiang cotton railway transportation, and determined that by the end of the year, the loading capacity of cotton should be maintained at more than 300 vehicles per day, an increase of 50 vehicles / days compared with the same period last year. Besides the market regulation, the central bank once again raised the deposit reserve ratio. The tight monetary policy also made speculators "tremble with fear." Under such circumstances, the domestic cotton market is showing signs of weakness, and most textile enterprises suspend purchases, and cotton prices are expected to return to reason.

　 However, "under the background of cotton production reduction and inflation expectations rising, it is expected that cotton prices will continue to run at a high level in the later stage." Ma Wenfeng, analyst at Beijing Eastern Agribusiness Consulting Co., Ltd. The cotton storage data showed that the quality and output of cotton were negatively affected due to the low temperature and other weather conditions during the sowing period. The total output of cotton is expected to be 6 million 360 thousand tons this year, down 5.5% from the previous year.