Weekly Report: More than One Million Tons of Xinjiang Cotton Delivered to Warehouses, Inland Procurement is Slow

By the end of October, seed cotton harvest came to the final phase. Xinjiang machine picking cotton will close soon, and seed cotton buying and processing speed up. By 31st, October, 61.99% of Xinjiang cotton had been picked, and 60.32% was sold; 1.36 million tons had been ginned and 1.01 million tons delivered to warehouses. By last week (27th -31st October), according to CCA survey, the average buying price for 3128 seed cotton equivalence was 6.2 Yuan/kilo, 0.08 Yuan up over the week. The temperature drop ahead of time would reduce the crop yield and quality, which will affect the price in later market. 
Currently, there are 38 certified cotton warehouses under supervision, with daily maximum appointment volume of 75,000 tons; the daily actual warehouse delivery is around 60,000 tons, which could fully meet the cotton warehouse delivery in Xinjiang. At the same time, China National Cotton Exchange (CNCE) will take further measures to transfer the stored cotton out of Xinjiang for more warehouse space and delivery. To meet the increasing road transportation requirement, CNCE will optimize the on-spot investigation to ensure vehicles departing the investigation spot within 4 hours. Meanwhile, Inland cotton regions experience slow selling, both sides are very cautious to move.
Last week, CC Index (3128B) settled at 14,768 Yuan/ton on 31st October, 18 Yuan up over the week. To promote Xinjiang cotton, CNCE initiated Xinjiang cotton auction with daily target volume of 2,000 tons. On 31st, the first day transaction is 260 tons at average price of 14,847 Yuan/ton.