Weekly report: Strict Reserve Cotton Purchase Quality Requirement; Cautious Seed Cotton Purchase from Ginners

Recently, State Reserve Cotton Warehouse Delivery Quality Certification Regulation in 2013/14 Season and Agent Notice on State Reserve Cotton Bale Sampling in 2013/14 Season were announced by government. The new requirements include gin is responsible for two sides sampling on bales, one sample was sent for HVI testing, one was kept for checking; after sampling by ginners; inspection sampling controller and sensory testing technicians would take over and check on samples on spot and confirm the result by signature from gin and inspection sides; after cotton delivery to warehouse, acceptance inspection includes preliminary inspection by warehouse and machinery testing by inspection institute. Reserve purchase has no transaction for the first week due to limited resource.
Last week 9th/13th September, cotton was in boll opening period, the high temperature in most cotton regions was good for opening, except rain and overcast in southern Huanghuai, northern Jianghuai and jianghan would cause flower and boll shedding and decline of fiber quality.
Since new arrivals accumulate gradually, the price started to be clear. According to CCA Cotton Processing Industry Branch, for the week Xinjiang 2129 equivalent seed cotton buying price was 8.82 Yuan per kilo in average; inland 3128 equivalent seed cotton buying price was 8.45 Yuan per kilo, 0.05 Yuan up over the week. Most seed cotton inland had good quality of white cotton grade 3 as majority; in southern Xinjiang white cotton grade 2 prevailed, and in northern Xinjiang it was grade 3 mostly. The cotton field hit by natural adversity in some region cause quality decline, which probably resulting in difficult sale to reserve. Domestic cotton spot price declined, on 13th September, CC Index 328 settled at 19,137 Yuan per ton, 12 Yuan down over the week; ZCE cotton futures nearby contract settled at 20,945 Yuan per ton, 55 Yuan down over the week.
As for import cotton price, by weekend FC Index settled at 97.27 cent/lb. 1.84 cent up over the week.