Weekly Report: Reserve Cotton Meets Market Demand, and the Turnover Rate Reaches 100%

1. Reserve Cotton continues to be 100% Traded

Since the beginning of the cotton reserve rotation on July 1, a total of 104,700 tons have been planned to be rolled out on July 17, with the transaction rate reaching 100%, including 60,300 tons of Xinjiang cotton and 44,400 tons of Inland cotton, with the average transaction price of 11,514 Yuan/ton. Due to the continuous development of the epidemic abroad, international orders mainly for medium and high-grade cotton products have decreased, and textile enterprises have turned to the domestic market mainly for medium and low-grade cotton products. However, the price advantage of cotton reserves is relatively large, and the quality can also meet the textile demand. The transaction has been 100% for three consecutive weeks.

2. Cotton is Growing well, with a slight Increase in Yield

At present, most of the country's cotton is into the blooming period, and parts of western Henan, Jiangsu, and northern Hubei are in the budding period. According to CCA, the national cotton planting area was 46.156 million mu, a decrease of 4.15% year-on-year; the unit yield increased slightly year-on-year, and the total output was about 5.765 million tons, a year-on-year decrease of 2.4%.

3. The Domestic Cotton Price Rose and the Foreign Cotton Price Fell

Last week, the National Bureau of Statistics announced that China's GDP grew by 3.2% year on year in the second quarter. International cotton prices have declined due to the rebound of the epidemic in the US and the tension between China and the US. The weekly average price of CC Index(3128B) was 12,168 Yuan/ton, up 87 Yuan month on month. The weekly average price of imported cotton FC Index M was 70.08 cents/lb, down 0.92 cents month-on-month. Zhengzhou Commodity Exchange main cotton contract CF009 week average price 12045 Yuan/ton, up 40 Yuan month on month.