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Cotton prices drop nearly 20%

2011-7-6

Cotton prices remain on a downward trajectory so far this year after the rise last year, according to China Cotton Association(CCA). Analysts said huge volatility of cotton prices since gave a blow to traders that hoarded cotton.

Ma Wenfeng, an analyst with Beijing Dongfang Agro Consulting Co. Ltd, said cotton prices had declined nearly 20 percent from its peak, but it still stayed at a higher level.

Cotton prices hit one after another new record in the second half last year: China"s Grade-328 cotton(standard cotton)price rose 40 percent October-November. And the soaring prices directly raised costs of textile and clothes industry as new clothes prices rose 20-30 percent in general.

Source:China Cotton Association
 
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