China Reserves Cotton For The First Time To Declare Half Of Its Capacity.

With the market's growing worries about China's cotton demand and the global macroeconomic outlook, China's ability to open up and store is the key to confidence. To this end, the Central Cotton store recently issued a notice on the need to secure storage and storage, to ensure open storage and purchase, and again stressed that the fixed price is not limited to the purchase and storage. It also pointed out that the planned volume of storage has reached 4 million 100 thousand tons, accounting for 55% of the estimated annual output. This is also the first time the central storage cotton has disclosed the capacity to store and store reserves.

Statistics show that as of November 23rd, cotton temporary storage and storage spanactions totaled 774 thousand tons this year, including 230 thousand tons of cotton in the mainland and 544 thousand tons of Xinjiang cotton. With the weakening of domestic and foreign cotton market and the increase of acquisition and processing capacity of new cotton, some stores and enterprises have not enough confidence to open up their stores to the state.

"With the smooth operation of the purchase and storage, a large number of cotton withdrew from the market for a period of time. market The balance of supply and demand will be reached, and the price of cotton market will gradually stabilize until recovery. Recommendation for cotton reserves cotton The acquisition and processing enterprises should correctly analyze the market, reasonably arrange the quantity and progress of the storage and marketing of cotton, so as to maximize the economic benefits.

China store cotton said it has done a good job of temporary storage and storage. Where the enterprises need to deliver qualified cotton, the central storage cotton general company will guarantee all acquisitions. To this end, the central storage cotton company has prepared the capacity plan to reach 4 million 100 thousand tons, accounting for 55% of the estimated annual output. Among them, 7 batches were announced to the public and 105 reserve warehouses were collected (92 in the mainland and 13 in Xinjiang), with a storage capacity of 3 million 930 thousand tons, and 12 warehouses and 210 thousand tons of storage capacity were not publicized. 65 storage and storage points have been opened, with a capacity of 2 million 700 thousand tons.

According to the uneven distribution of the reservoir points in some areas, Xinjian cotton, which was recently arranged for the storage of cotton, has moved to the mainland in succession. In some centralized producing areas, it has again publicly hired a number of reserve cotton storehouses, and excavated the resources that the society can use.

It is worth noting that the release of the document has just been selected at the critical time when the US cotton fell below 90 cents / lb. Entering the November, the cotton industry chain, besides cotton lint, and other commodity spot quotes, such as cotton yarn and viscose, are not only weak but also strong. On the eve of the announcement of the Central Cotton store announcement, due to the market's growing concern about China's cotton demand and the global macro-economic outlook, the import market of cotton, represented by the US cotton market, is losing heavily. The US cotton index has slumped for three consecutive trading days. On Monday night, the ICE cotton December contract plummeted 4 cents, triggering a stop board, and creating a new low of 90.81 cents / pound in the past year. The bottom of Tuesday night rose slightly 0.89 cents.

Chen Shumin, an analyst with Tianqi futures, believes that the launch of the announcement is to give the market confidence once again, and Zheng cotton may be independent of the weakening of the peripheral economy. However, from the current demand and precondition, oversupply will still suppress cotton prices, and the purchase and storage of cotton as the next year's initial inventory will also become a heavy burden for the coming year, and cotton prices will not be enough to reverse the weakness. The decline in cotton prices has been powerless and difficult to say.