Weekly Report: Reserve Cotton Turnover Rate Recovered, the Spot Price of Both Domestic and Foreign Cotton Rise

1. The turnover rate of cotton reserve has recovered

The cotton reserve entered the seventh week (January 13-17). After 12 consecutive trading days of no transaction since December 27, 2019, there were 3 consecutive daily transactions starting from December 15. The highest turnover rate was 13.71% on January 17. The weekly plan was to roll in 35,000 tons, with a total turnover of 2,200 tons, a turnover rate of 6.29%, the lowest turnover of 14,097 Yuan/ton and the highest price of 14,107 Yuan/ton.

As of January 17, a total of 39,200 tons of cotton from the reserve were traded, with a turnover rate of 16.47%. According to the formula for calculating the maximum bidding price for central reserve cotton in the eighth week of 2019 (from January 19 to January 23) 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 eighth week of 2019 (from January 19 to January 23) is 14,197 Yuan/ton (standard grade 3128B price), up 90 Yuan/ton from last week.

2. Domestic and foreign spot prices rose

Last week (January 13-17), affected by the formal signing of the first phase of the China-US economic and trade agreement, the spot price of cotton rose. The average weekly price of the CC Index (3128B) was 13,912 Yuan / ton. The weekly average price of the Cotlook A Index was 79.74 cents / lb, an increase of 1.14 cents, and a 1% tariff reduction of 13,741 Yuan/ ton, which was 171 yuan lower than the China Cotton Price Index CC Index (3128B). Under the Sliding duty of 14790 / ton, 878 Yuan higher than the China Cotton Price index; the average weekly price of the Foreign Cotton Price Index FC Index M was 80.58 cents / lb, an increase of 0.87 cents from the previous month; the main cotton contract of Zhengzhou Commodity Exchange CF005 weekly price 14,138 Yuan / ton, a slight decrease of 44 Yuan from the previous month; the average weekly price of ICE cotton futures in recent contracts was 70.94 cents / lb, an increase of 0.57 cents from the previous month.

3. Xinjiang's processing volume was flat year-on-year

As of January 18, processing volume in Xinjiang reached 4.965 million tons, unchanged year on year and 0.6 percent lower than last week.