State reserved cotton prices pick up in China

Cotton prices in spot Anhui market were notionally stable on Tuesday, with those for grade-3128 and grade 4127 materials at 15.70-15.80 Yuan a kg (US$2.28-2.30 a kg) and 15.40-15.50 Yuan a kg (US$2.24-2.25 a kg), respectively.

Imported cotton prices retreated on the day. Self-lifting offers for US-origin EMOT SM cotton (loading in Apr/May) fell to 16.77 Yuan a kg (US$2.44, down US cent 1) under sliding duties and declined to 16.02 Yuan a kg (US$2.33, down US cent 1) 1% in-quota tariff respectively.

The auction of state-reserved cotton picked up slightly and cotton futures rebounded as well, implying some potential of price upticks for cotton spot in the short term.