Weekly Report: Reserve Purchase Quality Standards Lowered in Hunan, Hubei and Jiangxi Provinces

Three provinces of Hubei, Hunan and Jiangxi in Yangtze cotton region experienced drought, low temperature and lasting rain in the critical growing stage of cotton plants during this season, therefore, cotton quality there seldom met reserve purchase standard, the seed cotton market was in a stalemate. In order to protect cotton growers’ interests, reserve purchase in these three provinces lowered the color grade minimum requirement to light spotted cotton of grade three and the length to 26 mm, all other requirements unchanged and Cotton Quality Value Difference of China Cotton Association shall be applied; specific reserve purchase volumes are constrained as following: 460,000 ton for Hubei Province, 260,000 ton for Hunan Province, 118,000 ton for Jiangxi Province, these numbers are decided according to their cotton output estimate of 2013/14 season.  By 27th December, 291,800 ton of cotton in Hubei had been sold to reserve, 6.25% of national reserve purchase, 85,300 ton in Hunan for percentage of 1.82%, and 67,500 ton in Jiangxi, 1.44%of the total.
Last week (23rd/27th December), CC Index 3128B settled at 19,535 Yuan per ton, 15 Yuan down over the week. Currently seed cotton market in Hubei, Hunan and Jiangxi provinces was more active than previous weeks. According to CCA cotton processing industry branch, weekly average buying price for Xinjiang seed cotton equivalent of lint 3128 was 8.6 Yuan per kilo, 0.06 Yuan down over the week; that in inland was 8.49 Yuan per kilo, 0.05 Yuan down over the week.
By 27th December, reserve purchase totaled 4,685,400 ton, including 1,905,400 ton from Xinjiang, 1,212,200 ton from inland, and 1,567,800 ton via large contract. Reserve release offered 492,300 ton of cotton for auction, the actual transaction was 235,200 ton, including 175,900 ton of domestic cotton at transaction percentage of 40.7%, and 59,300 ton of inland cotton at transaction percentage of 98.8%.
As for import cotton price, FC Index settled at 93.18 cent/lb, 0.18 cent down over the week.