On the 10th of august, the State Reserve Auction started. At the beginning, the spinners showed great interests in bidding, giving fairly high prices. However, later in the week, the bidding prices went back to normal level. Until the 13th, a total of 59622 tons, which takes 10% of the planned cotton output has been sold out.
The average price is 18186 yuan per ton, while the price transformed to 328 is 18385 yuan per ton.As the sales of cotton is calculated using net weight this time, the price comes out a little bit lower than the China Cotton Index (328). The holding of cotton reserve auction has stopped the cotton price from falling down from last week as the price rose up on thursday and friday, but there were only a few transactions.At the end of last week, CC Index 328 was 18139 yuan per ton, with a decrease of 40 yuan per ton. National e-trade organisations and the futures market presented a high level of performance as a result of an increase of all contracts.
