Storage Branch: Monthly Report On Cotton Turnover Inventory (November 2010)

Project commitment: China

Since the beginning of the new year, prices of domestic agricultural products, including cotton, have risen sharply. In order to ensure market supply and curb price increases, the state further intensified macroeconomic regulation and control in November, raised the deposit reserve rate for the two time and issued a number of management measures.

Under these measures, the prices of agricultural products should fall back.

Among them, because of the early increase in cotton prices, the price of this callback is fast and large.

There is a stalemate in the purchase and sale of cotton market, and the actual turnover is decreasing.

The cotton warehouse Association of China Cotton Association has counted 127 warehousing units. As of the end of November 2010, the total turnover of commodity cotton turnover was 898 thousand tons (216 thousand tons in the mainland and 682 thousand tons in Xinjiang), an increase of 398 thousand tons in the chain.

Accordingly, the total inventory of cotton turnover in the whole country is about 988 thousand tons, an increase of 442 thousand tons from the previous month.

That month, 21 pit stations in Xinjiang pported 272 thousand tons of cotton to the mainland by rail.

1. Mainland commodity cotton turnover inventory

As of the end of November 2010, the turnover of commodity cotton turnover in the 106 cotton warehouses in the mainland was 21.6 tons, an increase of 116 thousand tons, an increase of 64 thousand tons compared with the same period last year.

The increase in stock in the mainland was mainly due to the smooth running of Sinop cotton last year.

This year, the railway department arranged the pportation of Xinjiang cotton ahead of schedule. In November, 300 vehicles were dispatched on a daily basis.

After the price falls, the number of cars is reduced, but the average monthly load is still up to 274 cars, up nearly 30% over the same period.

From the distribution of the mainland stock in the same month, the inventory structure changed from last month, Shandong accounted for 28%, down 21 percentage points from the previous month; Hubei accounted for 20%, an increase of 15 percentage points from the previous month; Anhui accounted for 8%, down 1 percentage points from the previous month; Jiangsu stock accounted for 8%, up 2 percentage points from the previous month.

Hebei and Henan accounted for 12% and 14% respectively, down 2 percentage points from the previous month.

Two, Xinjiang commodity cotton turnover inventory

As of the end of November 2010, 21 warehouses in Xinjiang were converted to 682 thousand tons of commodity cotton week (middle), with an increase of 282 thousand tons.

In that month, the above pfer stations pported 272 thousand tons of cotton to the mainland by rail and 180 thousand tons per annulus. According to this, it was estimated that by the end of the month, Xinjiang cotton would have a capacity of about 63 thousand tons.