Weekly Report: The Difference between Domestic and Foreign Cotton Price is Large, and the Round-in of Cotton Reserve is Suspended

1.Cotton Reserve Round-in not Started

Recently, the exchange rate of RMB against US dollar has been continuously appreciating, and the gap between domestic and foreign cotton prices has maintained a high level. On December 3, it exceeded 2000 yuan/ton. According to the provisions of article 3 and article 13 of the "xinjiang cotton round-in-bidding measures for 2020", on November 26, 2020, on November 30, the difference between internal and external cotton prices exceeds RMB 800/ ton for three consecutive working days, and the round-in-transaction of Xinjiang cotton will be suspended on December 1. During the round-in period, when the difference of cotton price between inside and outside falls to less than 800 Yuan/ton, the trading shall be restarted on the first working day after the fall.

2.Xinjiang Processed Nearly 4 Million tons of Cotton

As of December 6, 2020, Xinjiang has processed 3,981,700 tons of lint, up 5.79% year on year. The region processed 2,457,800 tons of lint, up 3.7% year-on-year, and the XPCC processed 1,523,900 tons of lint, up 9.4% year-on-year. According to the data of China Fiber Quality Monitoring Center, in 2020, the notarization and inspection volume of cotton nationwide reached 3.5336 million tons, with a year-on-year growth of 6.76%, among which Xinjiang was 3.4780 million tons, with a year-on-year growth of 7.64%. The inland weighed 55,600 tons, down 25.88% year on year.

3.Both Domestic and Abroad Cotton Prices fell

Last week (November 30 - December 4), the domestic textile market is in the off-season, cotton is still in the concentrated listing period, the supply is generally loose, cotton prices at home and abroad fell overall. CC Index(3128B) rose first and then fell. The weekly average price was 14,594 Yuan/ton, up 20 Yuan from the previous month. Zhengzhou Commodity Exchange main cotton contract CF101 weekly average price of 14,436 Yuan/ton, down 16 Yuan month on month.