Business

China Cotton Reserve Sales

On August 25, 2016, CNCRC planned to auction 30,050.778 tons of cotton while the actual trading volume was 21,132.734 tons, meeting 70.32% of the target. By August 25, 1,959,733.2957 tons of cotton has been sold, including 296,306.06 tons of imported cotton and 1,663,427.24 tons of domestic cotton. Meanwhile, China has reduced support price for Xingiang farmers by 500 yuan/MT. China is expected to maintain base stock of 3 million tons going forward. The market can expect China cotton prices at 14000 yuan levels in the coming season. China state reserve has also reduced floor price for cotton auction by 462 Yuan per metric tonne compared with last week. The weekly average of the three indices (CNCotton B/CCIndex/Cotlook A) during August 22 to August 26, 2016 is 13,927 Yuan per ton.

The floor price during last week (August 15-August 19) was 14,389 yuan/ton.

State reserve during the current auction season, which started from May 3 has so far sold 18.82 lakh tons of cotton from the target of 20 lakh tons. New crop has begun arriving in Kashi and Turpan in Xinjiang. Seed cotton price is currently at 6.5 yuan per kilo. Inland cotton is also opening now.