Weekly Report: Positive Weather for Cotton Growth; Spot Market was Sluggish

Since cotton sowing, weather conditions have been positive for cotton growth, which advanced slightly. By end of May, cotton in Xinjiang comes to squaring stage in some areas; some are in the fifth true leaf period; in Yellow river and Yangtze regions, most cotton are in between third and fifth true leaf periods, some are still in period of emergence.
In May, Northwest, Huabei and most Yellow river and Huai river regions have abundant sunlight, slightly higher temperature, 50% to 200% more precipitation; therefore, the soil moisture content is good for cotton sowing growth. The rainfall of this month improved drought in some areas in the North, though middle and north of Huabei region had higher temperature, less rain and developing drought. In Jianghuai and Jianghan regions, weather conditions are conducive most of the time for cotton growth.
Reserve cotton release continued with less import cotton, thus reducing its transaction rate. Last week, the actual release was 128,000 ton, meeting target of 24%, 16% less over the week, among which all the 17,900 ton of import cotton was sold out, 50,400 ton less over the week. Due to 31st May, reserve cotton release totaled 1,908,000 ton in 2013, the transaction rate was 27.5%, among which 1,689,800 ton of domestic cotton, 218,400 ton of import cotton, 1,681,200 ton from inland warehouses, and 227,000 ton from Xinjiang warehouses.
Currently the textile market was in sluggish season, only high counts yarn has stable orders requirements while middle and small sized companies have reduced production. Last week, 27th/31st May, domestic cotton spot market was sluggish, and slightly reduced price. On 31st May, CC Index328 settled at 19,336 Yuan per ton, 14 Yuan down over the week; ZCE cotton futures nearby contract CF307 settled at 19,790 Yuan per ton, 55 Yuan down over the week.
As for import cotton price, FC Index settled at 92.81 cent/lb., 0.09 cent down over the week.