Weekly Report: New Arrival Postponed to Market??Seed Cotton Price Moved Higher

Currently, raw cotton stocks of mills are at relative low level and in want of replenishment, since the closure of reserve cotton release one month ago. After the National Holiday (1st October), most cotton ginners in Xinjiang had entered the market to buy the new crop. Affected by earlier low temperature, Xinjiang cotton harvest in large scale was postponed this season. Large cotton companies such as China National Cotton Group Corporation entered the market to buy and brought up the seed cotton purchase price. In local areas, Xinjiang seed cotton of white cotton 3129 equivalence has average price of 5.96 Yuan/kilo, 0.11 Yuan up over the week. Textile companies are actively signing contracts with ginners in worry of the timespan necessary for transportation, and road transport is their majority choice. Ginners also started to appoint AQSIQ inspection and speed up the business.
Lint warehouse delivery also increases as more and more seed cotton was sold and processed. China National Cotton Exchange (CNCE) added another 25 certified warehouses under supervision, and the daily warehouse volume for appointment is more than 30,000 tons, meeting the basic delivery need for ginners. Xinjiang statistics indicate, by 10th October, there were 149,300 tons of Xinjiang cotton ginned, including 66,900 tons by local ginners, and 82,400 tons by Xinjiang Production and Construction Corps; 51,200 tons was delivered to warehouses, comprised by 34,100 tons in Xinjiang local warehouses and 17,100 tons in PCC.