China Starts Auctioning Cotton Reserves

China Starts Auctioning Cotton Reserves

June 1, 2016

Story provided by the National Cotton Council

Earlier this month, China began auctioning off its state cotton reserves. The auctions are expected to continue through the end of August, just prior to the harvest of the 2016 cotton crop.      

Until recently, there was not a lot of information available regarding the Chinese cotton reserves and their impending auction.

 

Dr. Jody Campiche, Vice President of Economics and Policy Analysis for the National Cotton Council, explains how the auctions are expected to operate and discusses the trend of decreasing cotton prices at this year's auction, compared to last year. "The reasons behind this are attributed to the lower inventory of textile companies, lower auction-based prices, and limited availability of higher quality imported cotton," she says.

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