Market Trends: The First Batch Of National Cotton Stocks This Year Began To Be Sold In Turn Today

According to the information released by the Central Cotton Storage Information Center on July 28, according to the requirements of relevant national departments and the 2023 Central Reserve Cotton Sales Announcement, The base price of the first week (from July 31 to August 4) of this year's round sales of national reserve cotton is 17347 yuan/ton (equivalent to standard grade 3128B, the base price of the actual batch of reserve cotton that is listed on the market every day is calculated and determined according to the cotton notarization and inspection results and the relevant quality price difference table published by the China Cotton Association based on the standard sales base price). This marks that the first batch of national reserve cotton will be sold in rotation this year today.

On July 18, the Central Cotton Storage Information Center released an announcement on the sales of central cotton reserves in 2023. According to the announcement, according to the requirements of relevant national departments, in order to better meet the cotton demand of cotton spinning enterprises, China Reserve Cotton Management Co., Ltd. recently organized the sale of some central reserve cotton. Although no specific round sales time, quantity and bottom price were announced on that day, the market paid close attention to it. Then on July 20, the National Development and Reform Commission announced that, in order to ensure the demand of textile enterprises for cotton, it was decided after study that 750000 tons of import sliding tax quota for non-state trade of cotton in 2023 would be issued in the near future, with no restrictions on trade methods.

Li Tao, a cotton trader in Zhengzhou City, Henan Province, told reporters that the start of rotation sales of state-owned cotton reserves and the issuance of import sliding tax quota for non-state trade in cotton will have a greater impact on the later rise and fall of domestic cotton prices. At present, the domestic cotton in the new season is growing well, and the market speculation on the reduction of cotton area, low and high temperature damage, Xinjiang inventory changes and other topics is gradually ending. At the same time, when downstream demand is still difficult to find a big bright spot, the increase in supply will lead to the decline of cotton prices.

According to the reporter, China Reserve Cotton Management Co., Ltd. is listed on the national cotton trading market today to sell reserve cotton of 10002.705 tons, a total of 37 bales. The reservoir sites are mainly distributed in Fujian, Hunan, Jiangsu, Shandong, Tianjin and Zhejiang. At the same time, the distribution of import quotas under the rotation sales and sliding standard tax of the national reserve cotton has been widely welcomed by industry insiders, who believe that these measures will effectively supplement the cotton market supply, stabilize and stabilize the market price, and at the same time, before the new seed cotton is listed, it will also eliminate the mentality of ginning plants to breed rush harvest, so as to make the market more rational.