China Cotton Market Daily (22 Oct 2009)

CCF price
•10/22 CCF RMB price for type 329: 13950yuan/mt, +45yuan/mt
•10/22 CCF USD price for type 329: 92.78cent/lb
•10/21 Cotlook A: 68.00cent/lb, -0.85cent/lb

China cotton
As it was rumored that the relevant Gov Department planned to additional release 50,000mt of cotton to control prices, cotton price stabilized. Meanwhile, it was heard the sliding scale duty quota would be allocated in Nov, which also prevented price from hiking.

It is said that most of cotton enterprises have had a great number of inventory in previous period. Most of them have 2-3 months' inventory while some even had an inventory of 4 months. Thus some of them slowed down purchases.

Imported cotton
Today CIF offers for foreign cotton moved upward greatly. The offers for U.S, Brazil and Mexico crops were up 1.00-1.25cent/lb, while that for Central Asian and African crops hiked 0.75-1.00cent/lb. The offer for Indian crop hiked 0.25-0.50cent/lb, while that for long-stapled crop increased 4.00cent/lb. For example, the offer of U.S.PIMA SM 1-7/16 has hiked to 123-125cent/lb.

Some textile mills said they have received notices from National Development Reform Commission to accept sliding scale duty quotas on cotton.