China'S Cotton Market Is Facing A Sell-Off In The Stock Market Downturn

On Wednesday, it fell again, because investors are not convinced by a series of market support measures by Chinese regulators.

A spokesman who did not want to be named said: "this will help China cotton more than the target price, which will make the sale of cotton reserves meet with challenges."

On July 8th, the state warehouse unit issued a statement.

The auction will start in July 10th, but traders warned that the demand for performance was bad due to the abundant stock market and the high price of cotton reserves.

Zhengzhou's cotton contract in September hit a limit on Wednesday. The collapse of China's stock market led to a sell-off in the commodity market as a whole.

Traders say the Shanghai Composite Index has fallen more than 30% since mid June, and investors have withdrawn from the commodity market.

The national development and Reform Commission said in June that the national reserve cotton will arrange the reserve cotton rotation in the 7 and August through the national cotton trading market in an open bid this year. The number of rounds will be temporarily suspended by 1 million tons, and the sales will be stopped after the September new year.

The specific quantity and price arrangement are: 330 thousand tons of domestic cotton in 2011, bid price base (3128B, the same below), 13200 yuan / ton, 470 thousand tons of domestic cotton in 2012, 14200 yuan / ton bid price, 200 thousand tons of imported cotton in 2012, 15500 yuan / ton bid price.

In a statement issued on Tuesday, the China cotton reserve management company said that for a very bad reserve cotton, the price would be reduced by 2400 yuan per ton.

However, the majority

It is still higher than the domestic cotton contract premium. Zheng cotton contract fell to 12205 yuan per ton on Wednesday.

China's cotton reserves are about 11 million tons, about half of global stocks.