In 2019, The Total Turnover Of Xinjiang Cotton Reached 371 Thousand And 600 Tons.

Five years after the end of the temporary purchase and storage, the cotton storage wheel was re opened in December 2, 2019, and the round of trading was closed from December 2, 2019 to March 31, 2020. It lasted for 4 months. In March 31st, Xinjiang cotton went smoothly in 2019.

The planned purchase volume of the reserve cotton wheel is 786 thousand tons, and the total actual turnover is 371 thousand and 600 tons, accounting for 47% of the planned purchase volume. Among them, 359 thousand and 100 tons of mainland warehouse and 12 thousand and 500 tons of Xinjiang warehouse. The total number of participating enterprises was 103, with 24 stores.

On the whole, the planned volume of cotton reserves is low and high, and volume changes with the market. There were two main reasons for the significant increase in planned turn in the middle and late stages: first, after the impact of the new crown pneumonia epidemic, all the local governments postponed the resumption of work time. The two is the rapid spread of the new crown pneumonia epidemic in foreign countries, the more complex external trade environment, and many other reasons. The market atmosphere is bad. Most enterprises are pessimistic about the development of the future market, and the domestic spot cotton prices are greatly affected by this influence. In order to stabilize cotton prices, boost market confidence and balance supply and demand, the planned intake volume has increased significantly since the ninth week, from the initial planned volume of 7000 tons / day to 15000 tons / day, and the daily planned volume of 20000 tons from sixteenth weeks.

During the period of rotation, the enthusiasm of the cotton enterprises involved in storage has changed with the cotton price and the economic situation at home and abroad. In December, the production and operation of cotton textile enterprises in China was stable, and the willingness to replenish the warehouse was stronger than usual at the end of the year. Cotton prices were relatively strong, and cotton companies were more inclined to sell to textile enterprises. After the outbreak of the new crown pneumonia, the market was depressed, the risk aversion increased sharply, and the enthusiasm of the storage enterprises increased significantly, as shown in Figure 2.

This reserve cotton rotation has significantly increased linkage with domestic and foreign cotton prices and can effectively control risks. Market pricing mechanism supports cotton prices. For the first time, Xinjiang cotton has adopted the market pricing mechanism for the first time to enter the market and set the maximum price according to the market price. In the mid and late rounds of the new crown pneumonia outbreak, the domestic and foreign cotton prices were down, and the market pricing mechanism played a supporting role to a certain extent. The internal and external spreads decide whether to suspend the listing. In the implementation rules of the new territories cotton in 2019, the regulations stipulate that if the price difference between inside and outside cotton is worse than 800 yuan / ton for three consecutive working days, the new cotton will be suspended from the listing transaction. When the difference between the inside and outside cotton price drops to 800 yuan / ton, the first trading day after the fall will be restarted. During the round of entry, the two trading halts were triggered by the 3 consecutive working days of over 800 yuan / ton, due to the difference between domestic and foreign cotton prices. They were suspended at the end of February (suspended for 2 days) and in mid March (suspended for 1 days).

For 12 consecutive days from December 27, 2019 to January 14, 2020, the Chinese Cotton Textile Industry Association conducted research on Cotton Traders and cotton textile enterprises. Cotton traders said there were many reasons for the low turnover. There are three main points: first, since December 27th, the maximum price of the cotton reserve has been lower than the cotton futures price, and the price is not attractive; two, the two public inspection has increased the uncertainty of the cotton index and lowered the willingness to pay for storage. Three, the reasons for the storage and storage of cotton, such as the water quality of the storage cotton and the futures premium, have affected the enthusiasm of the enterprises involved in storage.

Cotton spinning enterprises have expressed three suggestions for the rotation of cotton reserves.

1. When the new cotton is transferred into some high-quality imported cotton at the same time, the reserve cotton will continue to turn out in 2020 to realize the normalization of the storage cotton wheel.

2, we must strictly guard against "black box" operation to ensure the openness and transparency of the storage of cotton.

3. During the period of the storage of cotton, the declared Treasury can not be included in the national reserve.