Will the upside of Chinese cotton prices continue

After the National Day holiday, amid the favorable macro sentiment, Chinese cotton prices show strong upward momentum stimulated by the output reduction anticipation in North Xinjiang and rush harvests of seed cotton in both North Xinjiang and South Xinjiang. ZCE major cotton contract has climbed up by more than 1,000yuan/mt and spot cotton prices also move up by 600yuan/mt.

In October, the transactions were mainly among ginners and traders, and traders showed high buying interests on new cotton, while the procurement from mills was bleak. With flat cotton yarn sales, mills only procured slightly more feedstock.