Cotton prices clearly rose in China in the past seven days.
On physical markets, grade 328 gained 67 yuan in the week to Monday to 13,402 yuan per ton or 75.01 cents per pound.
The same index further rose 6 yuan on Tuesday to 13,408 yuan.
Physical prices were stimulated by a series of factors.
First, the surge in New York futures in the past week resulted in anticipation of higher prices within China.
Second, rain continued pouring in several areas, therefore delaying the harvest.
Third and most important, stocks are being replenished at textile mills a few days before coming holidays, from October 1st.
Futures were also up in Zhengzhou with October 2005 gaining 135 yuan or nearly 1% in the week to Monday at 13,855. The same contract was left unchanged on Tuesday.
Prices also rose on CNCE (China National Cotton Exchange) where October 2005 gained 166 yuan or 1.19%.
Spinners did not order large quantities, preferring to wait for the new crop.
Procurement prices slightly rose in the past days, as ginners began purchasing raw cotton from farmers.
Import prices were down, by contrast, with US Emot 1.3/32 down 0.70 cent per pound to 58.25 cents per pound. The decline in New York futures after Rita's passage may be behind this decrease.
