cotton prices keep high which is supportive to cotton prices in short

Currently, 2021/22 seed cotton prices keep high, which is supportive to cotton prices in short. However, in fact, spinners have face slight deficits with cotton prices around 19,000yuan/mt, but they can accept, and if cotton prices rise above 20,000yuan/mt, spinners basically cannot accept the price level. The energy situation remains tight in China, and the production curtailment may continue in the fourth quarter. Then the demand for cotton yarn may reduce further, so the risks for high cotton prices may be intensified gradually. Last night, China Cotton Association has issued an industry risk warning. The relevant departments will promptly adopt measures such as increasing the supply of reserve cotton and increasing cotton imports to strengthen market regulation in accordance with market changes and the situation of textile demand, and strengthen the supervision of the spot market to maintain the order of new cotton purchases. Pay attention to whether there are any further measures in the later policy.