The procurement beginning of 2009 cotton season start smoothly in the whole, cotton price is higher than a year ago. Textile production and export continue improving, cotton demand is increasing. Cotton production reduced because of climatic factors, new cotton arrival delayed. Textile enterprises' inventories decreased, buying willingness are active, the State Reserve-out is still the main source of cotton, turnover and price continue rising substantially. Countries continue throw 600,000 tons cotton reserves, it played an important role to stabilize the market, protect the needs of textile enterprises.

In September, cotton picking is in full swing, but influenced by the late weather, national production forecast decline from the previous month and cotton maturity delayed. According to the China Cotton Association monitored in September, the total production will be 6.71 million tons, compared with August forecast decreased by 31 million tons and down by 13.9% compared with last year. Cotton harvesting progresses are slower than previous years. Sell price and sell progress are better than last year. Because cotton production reducing has confirmed, seed cotton prices continued rising, farmers unwilling-to-sell psychological are obvious.

Since the 3rd quarters, China's economy stabilize to rebound obviously, the overall situation is positive for the better, the textile industry, production continued growing. From January to September, the National yarn output tally 17.238 million tons, an increase of 10.4%. In September, China's foreign trade fell narrowed significantly, textile and garment export turn to warm once again, year on year decline step shrink to single digits, growth form last month start to rise, export sector is gradually recovering.

In September, textile enterprises enter the production season, cotton demand increase. As the new cotton arrival postponement, the market supply is not enough, the textile companies continue purchasing cotton from State Reserve-out. Before the National Day, textile enterprises replenish the stock, they auction positive, turnover rate and transaction prices have continued rising. Driven by seed cotton purchase price and reserve-out price rising, spot market price recover to increase too.