Local sources in Henan province have reported that standard T328 is now delivered at 14,000 RMB/ton and inferior quality at 13,800 RMB/ton. Physical prices have shown some resilience at 14,000 RMB/ton despite the continued decline of the ZCE price. Without additional quota, this price is becoming acceptable for spinners.
Merchants believe that the current physical price is nearing a bottom and offtake has increased moderately. One spinner is said to have taken nearly 100 tons of cotton from the futures market at 13,800 RMB/ton.
Recent rainfall in Shangqiu, Henan (eastern part of province near Anhui) province has eased drought concerns in the region. With good sunshine and ventilation, cotton plants are now squaring. Previous insect and pests have been held under control.
