China'S Cotton Policy May Affect The Cotton Price Fluctuation In The World Market.
In April 29th, the demand for cotton in China's textile mills became a key driving force in the business driven cotton season up to $2.27, leading to an increase of 175% in cotton prices over the past year.
But at present,
cotton
Producers may be worried about the recent low cotton prices, according to a report from the Texas Institute of technology cotton Economics Research Institute.
The reason is: China recently announced a procurement price, rebuilt strategic reserve stocks of cotton and increased 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, the Chinese government raised the purchase price of cotton to the world.
market
The impact of this report, the researchers said, the overall study shows that high cotton purchase prices in the first year may increase China's cotton imports, China's final inventory and world cotton prices.
How long this impact will last depends on how many years of high government procurement prices China has been taking.
The world's factory cotton forecast will decline, which is the high world.
Cotton price
The result.
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