Related Keywords: China, cotton demand, cotton import quota, global price, quality cotton, quality cotton in Australia, yarn
The decision to keep cotton import quota unchanged at 894,000 tonnes for 2015 by China the world’s largest cotton consumer it is likely that there will still be demand for cotton, even at the 40 percent tariff for non-quota imports. But the market has taken it as a bearish signal that is likely to put further downward pressure on global prices.
The benchmark second-month cotton contract on ICE Futures U.S. ended Dec. 12 at 61.07 U.S. cents a pound, up from the five-year low of 58.53 cents on Nov. 24, but down almost 28 percent since the start of the year.
