Analysis Of The New Detailed Rules For The Implementation Of Cotton Harvest And Storage This Year

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The biggest bright spot of the first batch of cotton harvest and storage this year is to enhance market confidence.

One is to "appease" the ginning plant's "anxiety" mentality, let it return to reason.

The second is to stabilize the enthusiasm of cotton farmers to strengthen the management of cotton fields in the new season, so that they no longer worry about whether the price of new season seed cotton is significantly lower.

The third is to support traders to carry out normal cotton purchase and sales activities, dispelling their worry that cotton prices will fall sharply again.

Fourth, it stabilized the uneasy mood of the whole market, and let all market participants see the hope of cotton price stabilizing.

From the analysis of the implementation rules of the first batch of cotton harvest and storage this year, there are still many new characteristics compared with the past.

For example, compared with previous years, first, the starting time was only defined, and the end time was not specified. Instead, it was "timely determined the end time according to the market situation and the collection and storage situation". In terms of policy adjustment, it also supported and helped the industry to "trade time for space";

Second, in terms of the number of round in, there is no guiding and relatively specific number for the daily collection and storage quantity, but "balanced arrangement and dynamic adjustment in principle" to give a greater possibility in the amount of collection and storage;

Thirdly, in the determination and adjustment cycle of the purchase and storage price, it is changed from one week fixed and linked with the domestic spot price and floated up by a certain proportion, to be fixed and clear according to the arithmetic average value of China's cotton price index and national cotton price index every day;

Fourth, in terms of circuit breaker mechanism, due to the special situation that the price difference between internal and external cotton continues to be deeply inverted, the "trading will be suspended if the price difference between internal and external cotton exceeds 800 yuan / ton for three consecutive working days" to "suspended if the price difference is higher than 18600 yuan / ton, then it will be started if it is lower";

Fifthly, in terms of quality requirements, the color grade requirements are relaxed, from the previous "white cotton grade 3 and above accounted for no less than 80%" to "as long as the first inspection result is white cotton grade 3 and above, then the reserve notarization inspection results in white cotton grade 4 and above and light spot contaminated cotton grade 1 also meet the storage requirements", fully considering the possibility of color degradation caused by time.