Chinese Seed Cotton Prices Sharply Decline - Growers Unhappy

Seed cotton procurement prices continue to erode across China, with current prices at their lowest level of the season, ranging from a low near 5.0 yuan per kilogram, basis Grade 3 up to a high of 5.50 yuan at some locations near gins.  These prices have been catastrophic on grower profit margins.  Although cotton picking is 75 to 80% complete, less than 20 to 30% of the growers have sold their seed cotton, having instead stored it in homes and sheds.  As each day passes and prices continue their downward movement, growers come closer to panicking and selling.  The NDRC move to acquire Xinjiang cotton for the reserve has had no impact.