Bloomberg reports higher prices and expenses associated with borrowing are the drivers for China's possible decrease, said Yuan Haiying, an advisor to companies. Demand for the soft fiber is likely to wane because the administration is aiming to stave off inflation while mills are more strongly inclined toward textiles that are man made.
"Demand was bound to slowdown as that kind of growth was not sustainable," the consultant told the news service on Thursday while in Washington at a conference. "We could see prices come down further."
At 2:46 p.m. on Thursday, cotton futures slipped 3.99 percent, a 0.06 cent reduction to $1.443 per pound.
Since October, the central bank of China's has increased interest rates four times as part of an inflation-tempering strategy.
Imports of cotton in April to China have dropped 35 percent from the year prior and last month the nation discontinued orders for at least 100,000 bales.
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