Last week, the National Bureau of Statistics released the economic data of December, the overall economic recovery to good, the 2009 GDP grew 8.7%. Since the Consumer Prices in November rose from negative to positive year on year, continued increasing in December. Market feared the government may tighten its monetary policy and raise interest rates, the domestic capital markets have dropped, Zhengzhou cotton futures market fell sharply for the third week. Weekend, the futures market prices have stabilized, but recent contracts was still down 215 yuan / ton.

The domestic spot market price keep stable. Most of processing enterprises procurements have been basically completed and now is in the cotton processing booming time. With the New Year approaching, the textile enterprices replenish material stock end, and the willingness to buy cotton is not strong. Part of the processing enterprises optimistic to the future price and not actively to sell, supply and demand sides deadlocked, spot prices remain stable. Last weekend, the value of China Cotton Index (CCIndex) of Type 328 is 14,937 yuan per ton, up by 5 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 7.42 yuan / kg.