Weekly Report: Cotton Demand is Strong, Cotton Prices continue to Rise

1. Domestic and Foreign Cotton Prices continue to Rise, the International is Weaker than Domestic

Recently, the domestic textile market demand picked up, downstream orders increased, spinning enterprises to increase the procurement of cotton, cotton prices continue to rise. Last week (October 12 - October 16), domestic cotton futures spot prices have hit new highs since the Spring Festival this year, back to the mid-January level of around 14,500 Yuan/ton. International cotton price increase less than domestic cotton, the difference between domestic and foreign cotton expansion. The weekly average price of China cotton price CC Index(3128B) was 14,036 Yuan/ton, up 926 Yuan from the previous month. Zhengzhou Commodity Exchange main cotton contract CF101 weekly average price 14,120 Yuan/ton, up 945 Yuan month on month.

2. Xinjiang Seed Cotton Purchase Price continued to Go Up, the Processing Volume Increased Significantly Year on Year

Domestic lint futures spot prices driven up the purchase price of seed cotton continues to increase. In Xinjiang, the purchase price of both hand-picked cotton and machine-picked cotton is about 2 Yuan higher than that of last year. At present, the purchase price of hand-picked cotton is 7.7-7.8 Yuan/kg. In some areas of Southern Xinjiang, the purchase price of machine-picked cotton seed cotton is 7.1-7.3 Yuan/kg. The inland's seed cotton purchase price has risen less, now at 5.7-6.5 Yuan/kg, about 0.5 Yuan higher than the same period last year.

Xinjiang new cotton came to market earlier this year and its processing progress is faster than that of last year. By October 18, 2020, Xinjiang has processed a total of 999,700 tons of lint, 37.01 percent higher than that of the same period last year, including 598,800 tons of lint processed by The Autonomous Region and 408,800 tons by the XPCC.