Weekly Report: Mills Replenishment before Spring Festival Caused Price Decline Slowing Down

Recently, No.1 Document on agricultural modern construction and reform is published by Central Committee of the Communist Party and the State Council. To summer up the cotton related content in this document: in the coming year, government will improve the management on import and tariff quota for important agricultural products such as grains, cotton and sugar; streamline the target price subsidy implementation on Xinjiang cotton, Dongbei and inner Mongolian soybean; and control a reasonable reserve stock level for grains, cotton, sugar and meat.
Last week (26th-30th January), some replenishment before Spring Festival was reported by mills, which brought cotton price upward slightly. On 30th CC Index (3128B) settled at 13,459 Yuan/ton, only 13 Yuan less over the week, and 146 Yuan down over the month. By the end of the month, precipitation in most inland regions hindered seed cotton buying there. According to CCA cotton processing industry branch survey, the weekly average price for 3128 equivalent seed cotton in Shandong and Hebei is 6.33 Yuan/kilo, which in Anhui is 6.02 Yuan/kilo.