Weekly Report: The Rotation of The Reserve Cotton Completed, Domestic Cotton Prices Decline Reduced

Source:China Cotton Association  Date: 07/April/2020

1. Turnover Rate of Reserve Cotton Is 47%

On March 31, the 2019 annual cotton reserve rotatation has completed. This round has take four months from December 2, 2019 to March 31, 2020. It is planned to put 500,000 tons of cotton into reserve, the actual listed quantity is 786,000 tons, the actual trading volume is 371,600 tons, and the transaction rate is 47%. The total amount of actual bidding was 79 days, and the total amount of actual generated trading volume was 59 days. Due to the difference between domestic and foreign cotton prices, which exceeded 800 Yuan/ton for 3 consecutive working days, the suspension of trading was triggered twice, respectively on March 2 and March 23. The turnover rate of the last two days of last week was 37.5%, down 46.55 percentage points from the previous week.

At the beginning of the round, the enterprise participation enthusiasm is higher, the transaction is more active; After the second half of December, with cotton prices rising, and most enterprises think that rotation in the quality, inspection requirements are too strict, the enthusiasm of the decline, the turnover rate fell. From December 2019, 27 to January 14, 2020, there were 12 consecutive days without transaction; After the Spring Festival, the epidemic situation continued to develop at home and abroad, the spot price of cotton continued to decline, the price advantage of the reserve cotton was reflected, the relevant departments raised the daily listing quantity from 7,000 tons to 20,000 tons, and the transaction rate remained at a high level until the end of the round.

 

2. The Domestic Cotton Price decline Reduced

Last week, the situation of domestic epidemic prevention and control was relatively stable, the rate of corporate resumption continued to rise, and the price drop in the cotton market; the international epidemic continued to spread, and the price drop in cotton was still relatively large. The weekly average price of the China Cotton Price Index CC Index (3128B) was 11,159 Yuan / ton, down 182 Yuan month-on-month; the weekly average price of the Cotlook A index was 60.72 cents / lb, down 2.34 cents month-on-month, and 1% tariff reduction was 10,545 Yuan / Ton, which is 614 yuan lower than the China Cotton Price Index (3128B) and 1,304 Yuan / ton under the quasi-tax, which is 1,846 Yuan higher than the China Cotton Price Index; the weekly average price of imported cotton price index FC Index M is 62.77 cents Pounds, a decrease of 2.45 cents from the previous month; the average weekly price of CF009, the main contract of cotton of Zhengzhou Commodity Exchange, was 10,866 Yuan / ton, a decrease of 99 Yuan from the previous week; the average weekly contract price of ICE cotton futures was 50.24 cents / lb, down 2.28 cents from the previous month.

Weekly average price

Domestic price (Yuan/ton)

International price (cent/Lb.)


CC Index(3128)

ZCE Futures Contract CF005

FCIndex M

Cotlook A

ICE2003 contract

3.23-3.27

11341

10965

65.22

63.06

52.52

3.30-4.03

11159

10866

62.77

60.72

50.24

Change

-182

-99

-2.45

-2.34

-2.28


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China Cotton Index (CC Index)
2021-12-1       more>>
  • CCindex (3128B) : 22242 -302
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