China shipped 2,043 tons of cotton in August for export, with the bulk of these shipments believed to be ELS styles and the remaining balance organic and colored cotton. The main export markets in August were India (666 tons), North Korea (590 tons), Thailand (291 tons), United Arab Emirates (291 tons) and Pakistan (205 tons). January through August exports only reached 6,805 tons. It is privately estimated that a total of 20,000 to 30,000 tons of export quota was released for 2008 ELS exports -- this quota has not been yet exhausted.
Domestic ELS cotton prices remain weak at 16,500 to 16,600 yuan per ton for T137, which is near to 109.56 to 110.22 U.S. cents per pound. Export offering prices are 126.00 to 130.00 U.S. cents per pound, CIF. Export offtake at these prices are weak. Nonetheless, exporters appear to be holding stocks in anticipation that China's domestic cotton prices could appreciate as stocks tighten. Old crop stocks of ELS are now thought to have tightened to near 50,000 tons.
