At the close of week ending June 6, domestic cotton prices within China weakened slightly. The steady approach of loan repayment deadlines by the Agriculture Development Bank has triggered increased liquidation of inventories. The sharp decline in international values last week, which stimulated offtake of imported cotton, also impacted the psychology of merchants and ginners. Domestic cotton prices still ended the week at substantial premiums to imported cotton.
T129 or GM 1-1/8" ended the week at 14,702 yuan per ton, landed the mill, or approximately 96.33 U.S. cents per pound, while T229 or SM 1-1/8" ended the week at 14,349 yuan per ton, landed the mill, or approximately 94.00 U.S. cents per pound. The yuan closed the week at a new record of 6.923 per U.S. dollar.
