The first day of reserve cotton trading is mostly light cotton

Since January 14, 2013, the China Reserve Cotton Management Corporation has released reserve cotton in an open auction through the national cotton trading market reserve cotton auction and trading system. The reserve reserve price of reserve cotton sold at this time of sale is 19,000 yuan/ton (standard level), and other grades of cotton are measured at a rate difference of 3% and a length difference of 1%.

On January 14, the number of reserved cotton was 38,062.27 tons, the actual turnover was 20,186.85 tons, and the turnover ratio was 53.04%. On the same day, the average cotton transaction reserve was 4.33; the average length was 28.5; the weighted transaction price was 18,405 yuan/ton, and the transaction price of 328 grades was 19,046 yuan/ton (weight), which was 143 yuan/ton lower than that of the CC Index 328; The price of the previous month was lower by 145 yuan/ton.

The collection and storage price of RMB 20,400/ton caused most of the new cotton in 2012/2013 to enter the national warehouse. As of January 14, the country has collected and stored 5.6 million tons of new cotton. The market expects that in 2012/2013, the total amount of new cotton collected by the country will account for 80% of China's total cotton production this year. The storage of new cotton has greatly reduced the supply of domestic cotton market. Due to the reduction of domestic cotton spot market resources and the steady increase in prices, textile companies had been expecting the country to put in reserve cotton as soon as possible. In order to meet the needs of textile cotton, the relevant department decided to sell some countries' reserve cotton after the approval of the State Council.

The qualifications and the number of bidders participating in this reserve cotton auction transaction are reviewed and approved by the China Cotton Textile Industry Association. The basis for validation is the annual yarn output of the textile cotton enterprise. In order to prevent the emergence of “circling cotton,” the maximum bidding amount of the participating companies before March 31, 2013 must not exceed their two-month cotton usage, and the reserve cotton purchased must be for personal use only and must not be sold; participation after March 31st The maximum bid volume of the company will be notified separately.

On January 14th, only 255 textile companies were approved to obtain the auction qualification. Actually, only 74 companies were traded. The reporters interviewed textile companies and learned that the main reasons for the lower transaction rate of reserve cotton on the first day of delivery are: First, the main deposits for this time are middle and low-grade cotton and all are Chen cotton before 2011, and the quality of cotton is difficult to guarantee. Secondly, the auction is based on bundles. A bundle of cotton needs a million dollars. For small and medium-sized textile companies, cash flow is also a problem. In addition, the previously rumored measures of throwing stockpiles with imported cotton have not been introduced.

Industry analysts believe that the future market situation is still uncertain, companies are still not optimistic about the market prospects, so that many textile companies are still in the wait-and-see attitude, this time throwing a cautious attitude. At present, global cotton supply exceeds demand, and international cotton prices are at a relatively low level. In addition, the export of domestic cotton textiles has been blocked, and the amount of cotton used by enterprises has been significantly reduced, making cotton demand subdued. With the support of policies, the cotton price will remain stable in the future.