As international prices have soared, a sharp increase in the offtake of local Chinese cotton has been noted. Merchants have also been able to obtain higher prices; the average price of lint increased 100 to 150 yuan per ton. In addition, mills have reported increased sales of 100-percent cotton 32 and 45-count yarns, which has helped stimulate demand. It appears offtake has been mainly focused on Xinjiang T229, T329 and T328. Non-PCC grown ELS T137 and T227 cotton has traded at very weak prices, with the discount to PCC ELS cotton increased. T137 non-PCC ELS has traded at 17,300 yuan per ton or approximately 113.89 U.S. cents per pound. Increased offtake of cotton located in the ZCE certificated stocks is also being noted. The ZCE's lack of premium to spot prices and the high quality standards of the grading process for the exchange have increased demand for these stocks.
