Weekly Report: Reserve Cotton Transaction Volume Reduced; No Reserve Release Policy Change before New Cotton Arrival

Currently reserve cotton dominated the mills raw cotton purchase in the textile’s off season, however, for this week reserve transaction reduced because that the reserve contract is too large in quantity for some mills and the cotton quality could not meet the mills’requirements. For last week (15th -21st May), 54,000 tons of reserve cotton was sold, 37% less over the week, by 20th June, reserve cotton release totaled 1,979,000 tons, 25.6% by transaction percentage, including 1,858,000 tons of domestic cotton and 121,000 tons of import cotton. According to CCA’s information, there will be no reserve release policy change before new cotton arrival.
During the middle of June, cotton in most regions is in flowering stage, some cotton in Henan and Hubei provinces is in the fifth true leaf stage. The sunlight in Huabei and Huanghuai regions is less than the corresponding time last year, which will delay the cotton flowering there. Heavy rain in some area of Jianghuai region affected cotton growth there. In Henan province, middle of Anhui and east of Hubei province, the dry weather and drought continued.
Cotton yarn domestic demand is weak, raw cotton stock stays at low level. On 20th June, CC Index 3128B settled at 17,368 Yuan per ton, 9 yuan down over the week.
As for import cotton price, FC Index settled at 93.27 cent/lb., 0.91 cent up over the week.