Weekly Report: New Arrivals Entered Market Sporadically; Ginners were Cautious at Buying

During the week of 19th /23rd August, weather conditions were conducive for cotton growth, new arrivals increased in scale and volume, some ginners started trial buying.
Last week, most cotton areas nationwide had abundant sunlight, some drought was eased by precipitation, while the typhoon of Trami caused field flood in Hunan and Jiangxi provinces. According to CCA survey, middle August weather was appropriate for cotton growth in general.
Presently, cotton picking was seen sporadically in Shandong, Hebei, Henan, Shanxi, Anhui, Hubei and Hunan provinces, though the prime harvest would postponed to around 10th September nationwide. According to CCA Cotton Processing Industry Branch, the quality of new arrivals this year was better than last year, some ginners started trial of buying at small volumes, though at different prices from 8.4-9.0 Yuan per kilo for seed cotton of type 328 equivalent.
Last week, CCA staff visited Hunan, Hubei provinces, where the acreage reduced and drought in earlier time impeded cotton flowering and boll development gravely, resulting in anticipated decline in both average output and quality.
Now the new season would started in one week, which would reveal this season reserve purchase policy with details, at the same time, next round reserve release was unclear in sight; therefore, mills were reluctant to buy, sales of both cotton and yarn were weak with declining prices. On 23rd August, CC Index328 settled at 19,176 Yuan per ton, 13 Yuan down over the week; ZEC cotton futures nearby contract settled at 20,995 Yuan per ton, 105 Yuan down over the week.
As for import cotton, FC Index settled at 93.69 cent/lb. by weekend, 5.58 cent down over the week.