Monthly Report On Cotton Situation In China (September 26, 2014)

At the end of August, new cotton began to buy sporadically.

In 2013, cotton production was reduced and demand was not strong. The policy of storage and storage led the market.

Textile enterprises purchase mainly cotton reserves and imported cotton, and volume and import volume have decreased considerably compared with the same period last year.

During the period of storage and purchase, cotton prices were mainly stable. After the end of the purchase and storage, the price of Xinjiang cotton was gradually returned to the market mechanism due to the pilot reform of cotton target price reform.

At the end of September, the Xinjiang autonomous region and the Corps target price reform pilot work plan was announced in succession, the national cotton teleconference was held, the new year macro-control policy is clear, the domestic production and demand situation is clear, the purchase and sale work is about to start in full swing.

In terms of supply, cotton area and output declined in 2013.

China Cotton Association statistics, domestic cotton output 7 million tons, down 9.4% compared with the same period last year, import volume has declined, but still at a relatively high level of history, the total import of 3 million tons in the whole year, down 31.7% compared to the same period. In the whole year, the total storage and storage volume was 6 million 310 thousand tons, the actual storage of 6 million 580 thousand tons, accounting for 94% of the year's output; in order to meet the needs of textile enterprises, the whole year put more than 13 million tons of cotton reserves, and a total turnover of 2 million 650 thousand tons.

In terms of demand, the textile industry is still mainly driven by growth. However, influenced by many factors, such as the international market downturn, RMB appreciation, labor price rise and competitive advantage weakening, some indicators have declined, especially cotton spinning enterprises.

According to the National Bureau of statistics, the national yarn production in 2013 was 34 million 390 thousand tons, an increase of 8.2% over the same period last year.

294 billion 400 million US dollars, an increase of 6.7% over the same period, the same period, cotton yarn imports rapid growth momentum weakened, the whole year imports 2 million 26 thousand tons, an increase of 4.2% over the same period, an increase of 44 percentage points year-on-year decline.

Price operation is relatively stable.

With the support of temporary purchasing and storage policy, the purchase price of domestic cotton seed rose steadily, and the spot price of lint basically stabilized at 19000 yuan / ton. After the end of the purchase and storage, the price of the cotton seed fell by 17000 yuan / ton at the end of August with the increase of cotton reserves and the gradual integration with the international market.

The average annual price of China's cotton price index (Index3128B) is 18625 yuan / ton.

Over the same period, domestic futures prices dropped more than international, and Zhengzhou cotton futures contract fell to a minimum of 14000 yuan / ton.

Cotton production continued to decline in 2014.

According to the China Cotton Association survey, the total area of cotton planting in the whole country was 63 million 400 thousand mu, down 9.4% compared with the same period last year, with a larger decline in the mainland and relatively stable Xinjiang.

Since the sowing of cotton plants, although some areas have been affected by local time, the overall meteorological conditions are normal. The climate suitability index of cotton is suitable for planting from late August to the end of August.

As of the end of August, the China Cotton Association expects the total output of cotton in China to be 6 million 710 thousand tons.

In September, continuous rain in some cotton areas had some effect on cotton growth, and there was uncertainty in cotton production. The time of listing was generally postponed.

In late August,

The new cotton market is sporadically listed, and the price is not representative due to the small quantity and the use of cotton wool.

In late September, the implementation plan of Xinjiang and corps cotton target price pilot work was announced, and the specific way and process of Xinjiang target price subsidy were clear.

In September 25th, the eight departments of the national development and Reform Commission held the national teleconference on cotton work, and made clear the policy of stopping the cotton reserve, arranging the cotton imports rationally, strengthening the supervision of the cotton futures market and so on, and deploying the new annual work.

In September 26th, the China Cotton Association held the two nine Executive Council and the cotton situation analysis conference. We believe that the demand for domestic cotton is expected to pick up as domestic and foreign cotton prices shrink and the state controls cotton imports and imports.

Cotton enterprises have begun to scale up and the quality has been attached great importance.

China's Cotton Association is ready for the new year's cotton policy.

Cotton farmers grasp the right time to sell cotton and sell them in a timely manner; cotton enterprises actively enter the market at reasonable prices, obtain stable resources, speed up capital turnover and do well in risk control.