In 2009, influenced by the national cotton area decline, the macro-control policy and recovery in the textile industry, the domestic seed cotton purchase price has been steadily rising, some areas hit a record high, except a few areas production reducing serious, the majority cotton farmers income increase in different levels. According to the relevant departments and local Cotton Association recent surveys, although the current price is still high, but farmers are still wavering on cotton planting in 2010, some expected to increase, some decrease.
In 2010, Xinjiang's cotton planting area is planning to stabilize around 2000 million mu, total output of 2.5 million tons; Hubei province up by 15%; Jiangsu province up by 6.41%; according to Shandong Province Dezhou Cotton Association survey, they will be down by 10%. At present, there is a long time to plant cotton, farmers said if the country can continue increasing the macro-economic control and releaseing policy to help cotton farmers increase incomes before the the cotton sowing, a portion suitable for cultivation cotton will adjust to expand cotton planting.
Last week (January 11 -15), the People's Bank of China (PBOC) decided to raise the deposit reserve rate, the cotton futures market fell sharply again; spot price also decline.
On 12th, the People's Bank of China (PBOC) announced to raise the deposit reserve requirement ratio by 0.5 percentage points from Jan. 18 this year. The ratio at small financial institutions such as the rural credit cooperatives would remain unchanged to support the agriculture sector. Influenced by this information, the cotton futures market and spot price fell sharply again. Last weekend, the value of China Cotton Index (CCIndex) of Type 328 is 14,932 yuan per ton, down by 10 yuan per ton from pre-week. According to the investigation of CCA Processing Branch, last weekend 3 grades of seed cotton purchasing price in most cotton district are 7.2-7.3 yuan/ kilogram, equal to the previous week; Shandong is the highest at 7.49 yuan / kg.
