Weekly Report: Rainfall in the South is not Conducive to Cotton Growth, and Cotton Reserve Transactions are Active

1. All Transactions of Reserve Cotton Completed, the Base Price Rose

The second week of reserve cotton round (July 6-10, 2020), 40,300 tons listed throughout the week, with a turnover rate of 100%, the same as last week, including: Xinjiang cotton turnover 25,300 tons, 100% turnover rate; Mainland cotton transactions were 15,000 tons, with a turnover rate of 100%; the average transaction price was 11,567 Yuan/ton, a discount of 3,128 Yuan to 12,913 Yuan/ton.

As of July 10, the cumulative turnover of reserve cotton rounds was 64,400 tons, with a turnover rate of 100%, the average transaction price was 11,468 Yuan/ton. According to the calculation formula of the central reserve cotton wheel sales base price, the third week (July 13-July 17) wheel base sales base price was 12029 Yuan/ton (equivalent to standard grade 3128B), an increase of 134 Yuan/ton from the previous week.

2. Both Domestic and Foreign Cotton Prices have Risen

Last week, the domestic economy was stable and improving, and cotton market prices rose steadily; the US Department of Agriculture monthly report lowered total cotton production and ending stocks, and cotton prices fluctuated. The weekly average price of the CC Index (3128B) was 12081 Yuan/ton, up 170 Yuan from the previous month; the main contract of cotton on Zhengzhou Commodity Exchange, was 12005 Yuan/ton, up 215 Yuan from the previous month.

3. The Weather Conditions in the Northern Cotton Region are Normal and the Precipitation in the South is Frequent

Last week, the light and temperature in the main cotton areas in the north were normal, the weather was fine and rainy, and the soil moisture was generally good, which was conducive to the growth and development of the cotton.