Weekly Report: Reserve Cotton Transaction Declined, Domestic Spot Price Decrease

National cotton planting intention reduced by 5.36% in 2020

In February, 2020, the second cotton planting intention survey on inland and Xinjiang cotton growers conducted by CCA was finished. The result indicates the intention national cotton planting acreage is 303 hectares, down by 5.36%, slightly higher than the 7.5% decrease in the first survey.

Reserve cotton transaction decline

During the eleventh week (10-14^th February), reserve cotton transaction declined largely. From 12^th February, the daily purchase plan recovered to 7,000 tons, and 51,000 tons for the week, and the transaction volume is 15,400 tons, at rate of 30.2%, 52.79% less than last week, the price bottom is 13,685 Yuan/ton, and the top is 13,715 Yuan/ton.

By 14^th February, cotton reserve finished transaction of 126,200 tons, at rate of 32.2%, with top price of 14,197 Yuan/ton, and bottom price of 12,879 Yuan/ton. According to the calculation formula of the price limit for central reserve cotton purchase set by National Food and Strategic Reserves Administration and Ministry of Finance, the price limit for the 12th week (17^th -21^st Feb.) of 2019 seasonal Xinjiang cotton reserve purchase is 13,672 Yuan/ton (3128B), 43 Yuan lower than last week.