China's Cotton Policy May Affect The Cotton Price Fluctuation In The World Market.

Our country Spin Factory demand for cotton has become a commercial driver. Cotton season The record up to $2.27 has played a crucial role in promoting. Cotton price It was 175% higher than it was a year ago. But cotton producers may be worried about the recent low cotton prices, according to Texas University of science and technology. cotton A report by the Economic Research Institute.

The reason is: China recently announced a copy. Purchase price We should rebuild our strategic reserve stocks and increase domestic output. The Chinese government reported on the temporary cotton purchase plan, which began in September 1, 2011, which lasted until March 2012.

In the report, on the impact of the Chinese government's increasing purchase price on the world market, the researchers of the report said that the overall research shows that the purchase price of high cotton may increase China's cotton imports, China's final stock and world cotton prices in the first year.

How long this impact will last depends on how many years of high government procurement prices China has been taking. The forecast of cotton production in the world will decline, which is the result of high world cotton prices.