Weekly Report: Reserve Cotton Transaction Restarted with Increasing Deals

For the fourteenth weak (2^nd-6^th March), cotton price difference home and abroad narrowed to 614 Yuan/ton(less than 800 Yuan/ton) on 3^rd March, therefore, reserve purchase restarted the next day, at the daily target of 15,000 tons. Around 32,600 tons of cotton was sold to reserve at rate of 72.36% over the week, 8.08% higher than last week. By 6^th March, a total volume of 186,400 tons of cotton was purchased by reserve at rate of 36.2%, at the top price of 14,197 Yuan/ton, and the bottom price of 12,879 Yuan/ton.

According to the formula of calculating the maximum bidding price limit for central reserve cotton set by National Food and Strategic Reserves Administration and Ministry of Finance (No. 3, 2019) , the maximum bidding price for the 15th week (9^th-13^th March) of 2019 seasonal Xinjiang cotton is 13,144 Yuan/ton (3128B), 421 Yuan down by last week.

Application for Tariff exemption on US cotton has started since 2^nd March, and some companies were granted after applying.