Weekly Report: Round-in Transactions Rebounded Before the Holiday, Domestic and International Cotton Prices Declined

Source:China Cotton Association  Date: 03/February/2020

1. The turnover rate of cotton reserve has recovered substantially

Before the Spring Festival, the cotton reserve was rotated into the eighth week (January 19-23). The whole week is planned to rotate 36,000 tons, with a total turnover of 16,000 tons and a turnover rate of 44.56%, which is 38.27% higher than the seventh week and the lowest turnover was 13,807 Yuan / ton, and the highest price is 14,197 Yuan / ton.

 

As of January 23, 55.24 million tons of cotton from the reserve were traded, with a turnover rate of 20.16 percent. According to the "Notice of the General Office of the State Council on the Extension of the Spring Festival Holiday of 2020", the trading of Xinjiang cotton round into reserve cotton in 2019 will continue from February 3, 2020. According to the formula for calculating the maximum bidding price for central reserve cotton in the 10th week of the the State Food and Material Reserve Bureau and the Ministry of Finance (No. 3, 2019),the maximum bidding price for Xinjiang cotton in the 10th week of the State Grain and Material Reserve Bureau (February 3-february 7) in 2019 is 14,135 yuan/ton (standard grade 3128B price).

 

2.Domestic and international cotton prices declined

In the week leading up to the Spring Festival, most of the country's textile companies have been on holiday and domestic prices have fallen slightly. Internationally, before and during the two weeks of the festival, affected by the new Coronavirus Infection Pneumonia in China, the price showed a downward trend. The weekly average price of China Cotton Price Index CC Index(3128B) was 13,879 Yuan/ton, down 33 yuan month-on-month. The average price of the Cotlook A Index(January 20-31) was 79.19 cents per pound, down 0.55 cents from the pre-holiday period. The 1% tariff was 13,647 Yuan/ton, 232 Yuan lower than the China Cotton Price Index CC Index(3128B). The slip tax was 14,730 Yuan/ ton, 851 Yuan higher than the CC Index. The weekly average price of imported cotton was 80.46 cents/pound, down 0.12 cents from the previous month. Zhengzhou Commodity Exchange cotton main contract CF005 week average price 13,765 Yuan/ton, a sequential decline of 373 Yuan; The most recent ICE cotton contract (Jan.20-31) averaged 69.59 cents a pound, down 1.35 cents from pre-holiday levels.

 

3. Xinjiang's processing volume was flat year-on-year

As of February 1, Xinjiang's processing volume reached 4.987 million tons, which was flat year-on-year and month-on-month.

 

4. China Cotton Association issued an initiative on epidemic prevention and control

During the critical period of prevention and control of the new Coronavirus pneumonia epidemic across the country, as an industry organization representing the interests of the entire cotton industry chain, the China Cotton Association called on all cotton industry members to take an active role in participating in the epidemic prevention work in an orderly manner in order to win the epidemic Contributing to combat and contributing.

 

Weekly average price

Domestic price (Yuan/ton)

International price (cent/Lb.)

CC Index(3128)

ZCE Futures Contract CF005

FCIndex M

Cotlook A

ICE2003 contract

1.13-1.17

13912

14138

80.58

79.74

70.94

1.20-1.31

13879

13765

80.46

79.19

69.59

change

-33

-373

-0.12

-0.55

-1.35


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