China will release cotton from state reserves from late July

CHINA will release cotton from state reserves in late July, according to an announcement posted by the China Cotton Reserves Management Company late on Tuesday (Jul 18).

It is the first announcement by China this year on the release of cotton from state reserves.

The base price of listed reserve cotton is determined by the spot price index of both the domestic market and the international market with a weight of 50 per cent each, the notice said.

The spot cotton price in China’s largest cotton origins, Xinjiang, rose to a one-year high of 17,700 yuan (S$3,250.2) a metric ton on Wednesday, according to data from the Shanghai-based JC Intelligence.

China’s agriculture ministry on Tuesday urged cotton growers in the world’s top producer to irrigate and fertilise more to cope with scorching temperatures that have hit major growing areas during the critical flowering period. REUTERS