China’s Cotton Sector Hammered by Covid Zero and World Inflation
- Zhengzhou futures contract has plunged 40% so far this year
- Expectations of a bumper domestic crop add to the pressure
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Add cotton to the list of Chinese commodities getting hammered by the government’s stringent virus restrictions and slowing economies around the world.
Futures have plunged 40% this year, leaving the market set to close at a two-year low on Tuesday, as Beijing’s persistence with Covid Zero hurts consumption and disrupts supply, and soaring global inflation saps demand for cotton products. The Zhengzhou contract ended the morning slightly weaker at 12,475 yuan ($1,708) a ton.