China has extended the sale of cotton from its reserves by a month till September to shore up domestic supply. The country had begun selling cotton from its reserves on March 6 and had planned to hold daily auctions until Aug 31. Higher demand for local yarn from domestic mills has made Chinese government extend the auction by confirming additional 414,000 tn of cotton from Xinjiang region for sale. During Mar-Jul, China managed to sell 2.09 mln tn of the 3.09 mln tn of cotton offered from its reserves. Local textile mills have bought about 55% of total cotton sold so far in China, while non-textile businesses have bought about 44%.