ZCE Cotton Drop to Limit Down; Spot Sales Flat

As ICE cotton futures closed to the day's "limit down" Wednesday, ZCE cotton opened low today and soon dropped the maximum allowable amount. In the middle session, May11 closed at 31345yuan/mt, down 1650yuan/mt. With Chinese new cotton coming to the market in big quantity and the imported cotton arriving, the supply tension will ease gradually.

On Spot market, the purchasing for seed cotton slows down somewhat and the traders lower offers slightly. In Shandong, some offers are adjusted down 0.20-0.40yuan/kg. Shandong Weiqiao recently lowered purchasing price for cotton by 200yuan/mt. Affected by the news, the sales on cotton market become flat. Wait-and-see sentiment among textile mills becomes heavier.

source:CCFGroup.com