Weekly Report: Price Declined Cotton Price Home and Abroad, Reserve Cotton Transaction Suspended

Last week, the global spread of coronavirus caused descending pressure on the global economy, both futures and commodity markets witnessed large decline. ICE cotton futures fell for 7 trading days nonstop, and ZCE cotton futures hit the limit on 28^th. From 26^th-28^th February, price difference home and abroad was more than 800 Yuan/ton since the reserve cotton transaction, which was therefore suspended on 2^nd March, by this large difference set in rule for reserve purchase in the first place.

For the thirteenth week (24^th -28^th February) of reserve cotton purchase, a total 27,600 tons of cotton was sold by transaction rate of 64.28%. By 28^th February, 153,900 tons of reserve cotton was purchased at rate of 32.74%, at the highest price of 14,197 Yuan/ton, and the lowest of 12,879 Yuan/ton. According to the formula of calculating the maximum bidding price limit for central reserve cotton set by National Food and Strategic Reserves Administration and Ministry of Finance (No. 3, 2019) , the maximum bidding price for the 14th week (2^nd-6^th March) of 2019 seasonal Xinjiang cotton is 13,565 Yuan/ton (3128B), 151 Yuan down by last week.