Recently, the meeting of micro-regulation of cotton price is held. After the meeting, some measures to control the cotton price are taken. The import quota of cotton is increased and the transportation in Xingjiang is improved. At the end of May, the cotton price decreases.
What's more, the cotton planting area rises this year. As a result, the momentum of price rise disappears in short term. However, the uncertainty of output and future supply will keep cotton at a relatively high price.
In the middle of June, the extra cotton brought by increasing import quota will help to balance the supply and demand. The momentum of price rise of cotton crocks up.
