Weekly Report: The Cotton Planting Area Declined Slightly, and the Domestic and Foreign Cotton Prices Rose

1. The cotton planting area decreased by 4.15% year on year

At the end of April, China Cotton Association conducted a survey on cotton planting area and planting progress. The results showed that the cotton planting area in China in 2020 was 46.156 million mu, down 4.15% year on year. Among them, the cotton planting area in Xinjiang was 36.655 million mu, down 0.59% year on year, accounting for 79.4% of the country's total area. The cotton planting area in the mainland continued to decline. The cotton planting area in the Yellow River basin was 4.969 million mu, down 16.04% year on year. The cotton planting area in the Yangtze river basin was 4.167 million mu, down by 15.65% year on year.

2. Meteorological conditions are generally conducive to cotton growth

In mid-May, cotton in Xinjiang, The Yellow River basin and the Yangtze River Basin is in the stage from seedling to the third true leaf, and some areas in Xinjiang have entered the fifth true leaf stage. The light and temperature in northwest China, North China and Huang-Huai area are suitable. In Jianghuai, Jianghan, Jiangnan and South China, most areas are interchangeable with rain and sunshine. The temperature in Jianghuai, Jianghan and the northern part of Jiangnan is close to the same period of the year, and the number of sunday-light hours in most areas is close to the same period of the year. The hydrothermal conditions are generally favorable for cotton seeding and growth.

3. Domestic and foreign cotton prices rose

The weekly average price of China Cotton Index CC Index(3128B) was 11,536 Yuan/ton, up 60 Yuan from the previous month. The weekly average price of Foreign Cotton Index FC Index M was 68.52 cents/lb, up 1.09 cents month-on-month. Zhengzhou Commodity Exchange main cotton contract CF009 week average price 11,588 Yuan/ton, up 111 Yuan month on month; ICE cotton futures recently averaged 57.71 cents a pound, up 2.63 cents.