According to Agweek.com and Reuters, China’s government is consulting with the country’s textile and cotton industry regarding possible plans to sell some of its 11 million ton cotton stockpile – a move that could drive Chinese domestic prices lower and continue to reduce demand for imported cotton.
The government is under pressure to sell its aging stockpile, which degrades over time and is racking up storage costs, says the report. An auction last year sold less than 64,000 tons – well below the target of 1 million tons – as the government-set prices did not attract bids.
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