Ministry Of Agriculture Issued May 2010 Cotton Market Monitoring Information

Recently, the Ministry of agriculture's agricultural products market monitoring and early warning expert group released the cotton market monitoring information in May 2010.

First, domestic cotton prices continue to rise.

In May, the average monthly price of grade 328 cotton was 16774 yuan / ton, an increase of 31.3% over the same period last year.

Two, international cotton prices hit a record high.

In May, the average price of Cotlook A (equivalent to the domestic 328 grade cotton) index was 89.75 cents / pound, up 44.9% from the same period last year, rising 1.9% compared with the same period, and hitting a record high again.

Three, the spread of domestic and foreign cotton spreads further.

In May, the Cotlook A index was equivalent to RMB 13506 yuan per ton, 3268 yuan lower than domestic cotton price, and the spread widen 132 yuan from last month.

The average price of imported cotton price index FC Index M (M grade is equivalent to 328 grade cotton in China) is 90.80 cents per pound, 1% yuan is 15796 yuan per ton, 1% yuan lower than domestic price, and 16286 yuan per ton after sliding duty tax, 488 yuan lower than domestic cotton price.

According to customs statistics, China's cotton imports in April were 324 thousand tons, unchanged from last month, an increase of 122.5% over the same period last year.

As of April, China imported 1 million 720 thousand tons of cotton in 2009/10, an increase of 94.4% over the same period last year.

Five, global cotton production is expected to increase substantially in 2010/11.

According to the International Cotton Advisory Committee (ICAC), in May, the global cotton planting area in 2010/11 will rebound, production will increase by 13% to 24 million 830 thousand tons, and Global trade volume will be 7 million 740 thousand tons, of which China's imports will increase 22% to 2 million 600 thousand tons.

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