Cotton futures in China are falling over worries the government may release its huge reserves to cut imports, the Wall Street Journal reported Monday. The benchmark May cotton contract on the Zhengzhou Commodity Exchange in Hunan province is down 1.6 percent since mid-October. It touched a one-month intraday low of 18,640 yuan (US$3,055) per metric ton on Monday before rebounding to close nearly unchanged at 18,660 yuan. The contract hit a three-month low last week, tracking a 7.9 percent fall in cotton futures on New York’s ICE exchange since the middle of last month, the report said.
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