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    Cotton Reserve Policy: Textile Enterprises Expect Longer Preparation Time

    2016/11/29 9:57:00 39

    Reserve CottonCotton PolicyTextile Enterprises

    Yesterday, the NDRC announced the arrangement of the reserve cotton rotation. It was decided that the new cotton market will not be arranged until the end of February this year (until the end of next year). In 2017, the sale of cotton reserves will start from March 6th, and the deadline will be tentatively scheduled for the end of August. The number of daily sales will be temporarily suspended by 30 thousand tons.

    If the market price of domestic and foreign market has obviously increased rapidly for a period of time, the turnover rate of the auction sale of reserve cotton will exceed three days or more than 70% days a week.

    The announcement is basically in line with expectations, but the NDRC stressed again that the sale date was March 6th, which slightly reminded the upstream ginning plants. Yesterday, the ginning factory also began to increase sales efforts, and the announcement seemed to be slightly empty.

    However, compared with the policy of reserve cotton rotation this year and next year, considering the large scale of local spinning in Xinjiang this year, the quantity of Xinjiang textile enterprises that can supply the mainland can be reduced.

    Textile enterprises

    It is estimated that the stocking time will be longer. Compared with the next year and this year's cotton reserves policy and the availability of cotton, there are not substantial changes. Therefore, it is estimated that next year's cotton reserves will not be too much pressure on the market, and the issue of Xinjiang cotton has not yet been effectively relieved. Textile enterprises are also facing the demand for replenishment. Therefore, it is not recommended to empty the market. It is suggested that the warehouse should be set up after the fall.

    India Market

    On the 24 day, the delivery price of the local S-6 ginning plant in India was maintained at 39250 rupees / candi (72.90 cents / pound); Punjab J-34 rose 30 rupees to 4120 rupees / Moore (72.90 cents / pound).

    At present, there are 20 thousand tons of cotton lint on sale locally, including 4 thousand and 300 tons in Gujarat and 7 thousand and 100 tons in Maharashtra.

    According to local media in India (HinduBusinessline), India's cotton market is digesting the new deal of local currency. The amount of seed cotton listed in Maharashtra, teren Garner and Gujarat has increased recently. Among them, 30 APMC cotton acquisition stations in Gujarat have resumed opening 5 or 6 on Tuesday, but many new flowers in cotton farmers are still piling up and can only wait for problems to be solved.

    Pakistan Market

    The government of Pakistan has stopped paying widespread attention to the new import license for India cotton. However, at present, the India Pakistan export incident has not brought panic to the local cotton trade in Pakistan. The performance of Pakistan textile enterprises has been more cautious. All parties are waiting for the Pakistani government to clarify the matter. The price of the new flower mill is still stable at 6200-6350 rupees / Moore, and the 4500-5500 grade rupee / Moore.

    According to statistics from the Pakistan Trade Development Council, Pakistan signed 17 thousand and 700 tons of cotton exports from August 1st to November 15th, of which 13 thousand and 100 tons were shipped.

    Domestic market

    At present, the picking up of machine picked cotton in Kuitun region is basically over. Most of the cotton ginning plants have completed the acquisition and processing work, and only a few are still buying sporadically.

    The cotton that is still being sold is mostly picked up by two cotton pickers and cotton farmers who have not been able to sell the cotton before they are picked up, but the purchase volume is also decreasing. Only 6 or 7 cars are sold in a day.

    This year, the overall quality of Kuitun's cotton is better, but the yield per unit area is lower than expected, which is between 320-380 kg / mu.

    Purchase volume

    Less than expected, cotton production in Kuitun is more likely.

    On Friday, the price of Zheng cotton futures contract fell, and the main contract went lower and lower. The price at the end of the contract was lower and the position was reduced by 13 thousand to 464 thousand.

    The CF701 settlement price is 15780 (-405), the CF705 settlement price is 15885 (-390), and the CF701 settlement price is 16160 (-350).

    Zheng cotton warehouse volume 636 (+2), effective warehouse receipt volume 1441 (+55).

    In November 25th, the domestic cotton index CCIndex3128B15962 (+26), the international cotton price index CotlookA80.2 (-0.5) cents / pounds.

    As at 24 hours in November 23rd, Xinjiang cotton processed 2 million 772 thousand tons, and the processing volume in nearly two days was reduced. The total volume of public inspection was 2 million 446 thousand tons in the whole country, and the 2 million 538 thousand and 200 tons of Xinjiang cotton in November 24th.


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