Xinjiang: Highway Transportation Falls Sharply, Warehouse Prepares For New Cotton

According to the feedback from the cotton regulatory warehouses in Korla, Bachu, Kuitun and other places, Xinjiang cotton has been in a state of continuous decline in truck delivery and relative strength in railway transportation since mid July. According to the statistics of logistics branch of China Cotton Association, the shipment volume of Xinjiang cotton professional warehouse in June was 310400 tons, which was significantly reduced by 281900 tons compared with may, but higher than 127700 tons in the same period of 2019.

Industry analysis shows that the sharp decline in road transportation is an important reason for the weakness of Xinjiang cotton delivery in June. First, the CF2009 contract price of Zheng cotton broke through the integer levels of 11500 yuan / ton, 11800 yuan / ton, 12000 yuan / ton, and the basis difference and point price trading of Xinjiang cotton slowed down significantly, and the expectation of small and medium-sized cotton mills in the mainland became increasingly strong; second, since some cotton mills had low inventory of cotton in Xinjiang, their purchase of low-quality Xinjiang cotton in 2019 / 20 was reduced, which was adjusted to buy on demand from mainland warehouses; Third, in the first ten days of July, Zheng cotton fluctuated and rose, some traders and cotton enterprises in Xinjiang were reluctant to sell, and they did not quote or quoted higher prices; fourth, the freight of cotton highway going out of Xinjiang continued to rise in recent more than one month, coupled with the serious flood disasters in some provinces, the number of "public transit railway" has been increasing.

Several warehouses in Xinjiang said that considering the short-term increase of melons and fruits in Xinjiang less than 3 months from the listing of new cotton and July to August; in addition, the pressure on the storage capacity of Xinjiang's warehouses has been fully eased (except for the Zhengzhou cotton delivery warehouse), there is little hope that the highway transportation volume of Xinjiang cotton will rebound from July to September, and the steady decline may still be a major trend. Therefore, at present, all warehouses are actively improving the storage capacity, inventory and clearing the platform, so as to prepare for the storage and shipment of lint in 2020 / 21.