Weekly Report: Cotton Planting Intention Declined More in Inland than in Xinjiang

According to the first cotton planting intention survey conducted by China Cotton Association in 2014, national cotton growing intention reduced by 8.9%, which estimates to be 63.72 million mu (4.25 million hectare), the lowest over the past decade. In Xinjiang the cotton planting intention decreased by 1.5%, Yellow River region reduced by 18%, Yangtze region was down by 12%. Cotton policy adjustment in 2014/15 season once released might bring out further possible changes on planting intention. A noticeable phenomenon in the survey is small scale growers gained less profit while large scale farmers grew quickly due to the continually increasing cost.
Last week (6th -10th January), domestic yarn and cloth market kept to be sluggish and the raw material inventory restored due to reserve cotton auction and import. Under new cotton standard, CC Index3128B settled at 19,509 Yuan per ton, 57 Yuan down over the week. Currently seed cotton purchase has already closed in Xinjiang, while relatively active in Yellow River and Yangtze regions. According to CCA cotton processing industry branch, weekly average price for seed cotton equivalent 3128 in Yellow River regions was 8.51 Yuan per kilo, unchanged over the week; that in Yangtze was 8.58 Yuan per kilo, 0.1 Yuan up over the week.
By 10th January, reserve purchase totaled 5.31 million ton, comprising of 3.74 million ton from Xinjiang, and 1.58 million ton from inland. Reserve sold of 327,800 ton, by transaction percentage of 45.41%, including 259,600 ton of inland cotton at transaction percentage of 39.8%, import cotton of 68,200 ton at transaction percentage of 98.9%. Since 6th January, reserve release offered cotton of 2012/13 season under new national quality standard, and 28,700 ton was sold for the week, 45.4% of the target.
As for import cotton, by weekend FC Index settled at 93.58 cent/lb., 0.24 cent down over the week.