Weekly Report: Large Cotton Companies Entered Market to Buy and Brought Seed Cotton Price Upward

After the national teleconference on cotton, the domestic cotton supportive policy was better clarified and understood, large cotton companies entered the seed cotton market to buy and brought the price upward. Zhengzhou cotton futures market rebounded before National Holiday (1st October), the major contract CF501 increased from the lowest point of 12,470 Yuan/ton up to 13,840 Yuan/ton within three trading days, and stayed above 13,000 Yuan/ton. China National Cotton Group Corporation and other key companies entered the market to buy and positively supported the seed cotton price. In North Xinjiang seed cotton buying price rose from the earlier 5.3 Yuan/kilo to the current 6.1 Yuan/kilo; in South Xinjiang it increased from 5.5 Yuan/kilo to 6.1 Yuan. Affected by the rain and Corban Festival, the Xinjiang seed cotton harvest was postponed. According to CCA survey, by 6th October Xinjiang cotton picking processed by 7.99% and sold by 6.56%, which are slower by 36.57% and 35.97% than the corresponding time last year.
After the Xinjiang cotton target price reform implementation plan was announced, government departments related set up working teams to visit cotton planting villages to introduce the policy, especially on subsidy grant. After approved by Xinjiang local relative department and PCC, the cotton ginners qualified are publicized for supervision and started purchase. Since 30th September, China National Cotton Exchange and China Fibre Testing Bureau (CFT) will open the online appointment for delivery in some cotton supervision warehouses. During the National Holiday, working staff in all certified warehouses and CFTB will still on work.