Weekly Report: The Cotton Reserve has not been Traded Continuously, and Domestic and Foreign Cotton Prices Rise

1. No transaction in reserve cotton

The sixth week of reserve cotton rotation (January 6-10). Due to the recent continuous rise in domestic cotton spot prices, there is no obvious advantage in the rotation price, and the quality requirements are high, and it needs to be delivered to the storage warehouse within a specified time The enthusiasm of the enterprise for deposit and storage is not high, and there has been no transaction for 10 consecutive trading days since December 27, 2019.

By January 10, the accumulative turnover of cotton reserve was 37,000 tons, with a turnover rate of 18.23%. According to the formula for calculating the maximum bidding price for central reserve cotton in the seventh week of 2019 (from January 13 to January 17) published by the State Grain and Material Reserve Bureau and the Ministry of Finance (no. 3 of 2019), the maximum bidding price for Xinjiang cotton in the seventh week of 2019 (from January 13 to January 17) is 14,107 Yuan/ton (standard grade 3128B price), up 238 Yuan/ton from last week.

2.Domestic and foreign cotton prices rose

Last week (January 6-10), affected by the news that China and the United States will sign the first-phase economic and trade agreement, domestic and foreign cotton prices continued to rise. The average weekly price of the China Cotton Price Index CC Index (3128B) was 13,777 Yuan / ton. The average weekly price of the Cotlook A Index was 78.60 cents / lb, up 0.56 cents from the previous month, and the 1% tariff was reduced by 13,547 Yuan / ton, which was 230 Yuan lower than the China Cotton Price Index CC Index (3128B). 14665 Yuan / ton under the sliding duty, which is 888 Yuan higher than the Chinese cotton price index; the average weekly price of the imported cotton price index FC Index M is 79.71 cents / lb, an increase of 0.55 cents from the previous month; the main cotton contract of Zhengzhou Commodity Exchange CF005 14,182 Yuan / ton, an increase of 187 Yuan from the previous month; the average weekly contract price of ICE cotton futures was 70.37 cents / lb, an increase of 1.10 cents from the previous month.

3. Xinjiang's processing capacity is close to 5 million tons

As of January 12, Xinjiang's processing volume was 4,925,500 tons, an increase of 0.6% year-on-year, and a decrease of 0.2 % from last week.