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    By The End Of June, At Least 1 Million 450 Thousand Tons Of Cotton Had Not Yet Been Sold.

    2019/7/22 15:23:00 7

    CottonInventorySales

    In the middle of July, the new cotton harvest time was only two months away from 2019/20, and some local ginning plants began to lease, sublet or even sell. The cotton enterprises involved in the new annual acquisition and processing began to work on machine maintenance, equipment renewal and commissioning. Textile enterprises, cotton traders and investment institutions also shifted their focus from the 2018/19 spot market to the new year.

    According to the cotton Logistics Association of China Cotton Association, as of the end of June, the turnover of 43 cotton warehouse cotton turnover in Xinjiang was 2 million 162 thousand tons, an increase of 1 million 63 thousand tons compared with the same period last year (in June, the storage volume of the warehouses in the territory was only 182 thousand and 700 tons, down 136 thousand and 500 tons compared with the same period last year), and how the digestion of the commodity cotton turnover inventory in the territory's supervision warehouse became the key to three months in the future. However, from the feedback point of every point in the territory, not only the June cotton road transport volume dropped 43%, but the volume of the garage output from July was still relatively low, and the year-on-year decline was outstanding.

    How much cotton is not sold in the cotton turnover inventory? According to the national cotton market monitoring system survey, as of July 12th, Xinjiang sold 3 million 773 thousand tons of lint, accounting for 73.95% of the total 5 million 102 thousand tons of processed lint in Xinjiang in 2018/19. But it is worth noting that the respondents are large and medium-sized cotton processing enterprises, excluding cotton traders. Therefore, it is certain that the 1 million 329 thousand tons of lint that are not sold will be included in the turnover of 2 million 162 thousand tons of commercial cotton (theoretical value).

    As of the end of June, 7875 warehouse receipts in the Zhengzhou deliveries warehouse (equivalent to 315 thousand tons of lint) were included, and the hedging warehouse receipts were included in the sale. In addition, the number of long-term supply contracts contracted by the mainland's large and medium-sized textile enterprises in 2018/19 was significantly reduced than in previous years. Therefore, as at the end of June, 20% of the less general turnover stocks which had not yet been shipped to the mainland (slightly higher in the northern Xinjiang regulatory center and lower in the southern Xinjiang), were about 400 thousand tons. According to this calculation, at least 216.2-31.5-40=144.7 million tons in the territory by the end of June have not yet been sold.

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