September 2008 domestic and foreign markets continued to decline in cotton price

In September 2008, the cotton price continued to decline in domestic and foreign markets, domestic and foreign cotton price gap, to reduce imports of cotton, textile production and export growth slowed further.

National Development and Reform Commission on October 15, in September 2008, the new cotton picking and acquisitions work carried out one after another, the purchase price of seed cotton Gaokaidizou. Domestic and foreign markets continued to decline in cotton price, to reduce imports of cotton, textile production and export growth slowed further. Seven departments jointly held a meeting to deploy the new cotton year of work.

A new cotton market in late 2007, the purchase price of seed cotton Gaokaidizou: in September 2008, most of the fine weather in producing areas, the new cotton picking and acquisitions work gradually. In 2008 due to the main cotton-producing regions in the cotton growing cold rainy weather experienced, mature cotton in 2007 than have to postpone, and seed cotton price is continuing to decline, farmers and so on Hard Trading in a Dream, a large number of new cotton market late in the second half of 2007 Or so.

In September 2008, the Mainland 3 seed cotton purchase price to 2.93 yuan / jin (discount lint 606 yuan / Tam), rose 0.17 yuan / jin, an increase of 6.3 percent; Xinjiang 3 seed cotton purchase price to 2.72 yuan / jin ( Lint break 583 yuan / Tam), rose 0.08 yuan / jin, an increase of 2.9 percent. From the price movements, Gaokaidizou purchase price of seed cotton in September. Kai Cheng early stage of seed cotton a higher price, the Mainland 3 seed cotton purchase price to 2.97 yuan / jin, 3 seed cotton in Xinjiang 2.8 yuan / jin. , Lint and cottonseed by domestic prices, seed cotton prices continue to drop, by the end of September Mainland 3 seed cotton purchase price 2.89 yuan / jin, Xinjiang 3 seed cotton purchase price 2.65 yuan / jin.

Second, both domestic and foreign cotton price down, inside and outside the cotton price gap: in September 2008, the impact of difficulties in the textile industry, domestic cotton price continued to fall. September-class standards of domestic cotton plant to the average price of 13,130 yuan / ton higher than in August fell 592 yuan, or 4.3 percent; of the National Cotton Exchange electronic trading together in October contract price 12,949 yuan / ton higher than in August fell 568 yuan, 4.2% decline; Zhengzhou cotton futures contract in November average price of 13,019 yuan / ton higher than in August fell 550 yuan, or 4.1 percent.

In September 2008, the U.S. financial crisis, suffered a serious setback in confidence in the market, funds have been evacuated from the futures markets, international commodity futures prices fell across the board. New York cotton futures contracts in October average price of 60.92 cents / lb more than in August fell 6.23 cents / lb, or 9.3 percent. Asia’s major ports price 77.10 cents / lb higher than in August fell 1.44 cents / lb, or 1.8 percent. By 1% tariff calculation, the cost of imports of discount of RMB 13,645 yuan / ton, 515 yuan higher than the domestic market / ton, a price in August to expand 298 yuan / ton; slip by quasi-tax basis, the cost of imports break RMB 14,069 yuan / ton , 939 yuan higher than the domestic market / ton, a price in August to expand 438 yuan / ton.

Third, to reduce imports of cotton, textile production and export growth slowed further: According to customs statistics, in September 2008, China imported 129,000 tons of cotton than in August to reduce the 58,000 tons over the same period in 2007 to reduce the 105,000 tons the same period last year 45%. 2008 January to September, China imported a total of 1,770,000 tons of cotton, up 6.7 percent decline.

In September 2008, the National yarn production 1,905,000 tons, up 6.8 percent. January to September, the National cumulative yarn output of 15,979,000 tons, up 9%. In September, Chinese textile and apparel exports 18,010,000,000 U.S. dollars, up 1.9 percent. January to September, China’s textile and garment export a total of 136,940,000,000 U.S. dollars, up 8.1 percent.

September 2008 textile prices fell slightly. 32 carded cotton yarn on average 19,704 yuan / ton higher than in August fell by 60 yuan / ton, or 0.3 percent; polyester staple fiber prices on average 10,889 yuan / ton, down 509 yuan / ton, or 4.5 percent.

Fourth, seven departments held a meeting to deploy the new cotton year: on September 25, the National Development and Reform Commission, Ministry of Finance, the Ministry of Agriculture, General Administration of Commerce and Industry, General Administration of Quality Supervision, Gongxiaozongshe and the Agricultural Development Bank of seven departments jointly held the National Cotton Video and telephone conference on the work of summing up the 2007 cotton, cotton analysis of the situation in 2008, the deployment of the new cotton year of work.