Starting From September 1St, Timely Purchase And Storage Of New Cotton

Recently from China Cotton

It is understood that in order to provide a good environment for the development of cotton and textile industry, further improve the level of national macro-control and ensure the effect of regulation and control, the relevant departments will further improve the relevant system of collection and storage, and the specific implementation plan will be announced in late August.

At the end of March this year, the eight departments of the NDRC, the Ministry of Finance and the Ministry of agriculture jointly issued the plan for the temporary storage and storage of cotton this year. It decided to implement the temporary storage and storage system in 13 cotton producing provinces (districts and cities) in Anhui, Xinjiang and Shandong from 2011, and the temporary storage and storage price will be 19800 yuan per ton of standard grade lint to the warehouse. The execution time will be September 1st this year to March 31st next year.

In August 4th, the economic and Trade Department of the NDRC convened a meeting of relevant departments, trade associations and related enterprises to study preparations for the temporary storage and purchase of cotton, including the calculation of reference price of seed cotton purchase, and the implementation measures for collecting and storing preplanned pactions.

The meeting held that the determination of reference price for seed cotton purchase should first protect the interests of cotton farmers, but at the same time, we should also consider the reasonable cost of processing enterprises. The implementation method of cotton temporary storage and storage pactions should be carried out in accordance with the principles of openness, fairness and fairness.

The meeting stressed that after the new cotton market was launched this year, according to the market changes, the temporary purchase and storage plan will be started in due course. It will be opened up and sold according to the standard storage price of 19800 yuan / ton of lint cotton.

However, the domestic cotton spot price index has been lower than the reserve price. China's cotton price index continued to weaken yesterday, and the 328 level reported 19692 yuan / ton, down 24 yuan.

Analysts pointed out that at present, the State Reserve has begun to prepare the plan to start the storage and purchase. However, from the past years, it is not possible to prevent the price from falling in the early stage of purchasing and storage. Only after a certain amount of storage is received, can the role of the market in storage and storage be reflected.

Because of the abundant supply of cotton and weak demand, domestic cotton prices are still facing downward pressure.

Earlier, the China cotton reserve management company (hereinafter referred to as "China store cotton") said that the overall growth of the main cotton producing areas in the whole country was flat or slightly better than that of the same period last year. The prospects for the production of the cotton production are optimistic and the supply is abundant. Moreover, the textile industry is in deep demand for "cold winter". As long as the weather is normal in the late period, the domestic cotton price will continue to face downward pressure.

Chu Chu cotton pointed out that in the next month, the supply of Xinjiang cotton is abundant. It is estimated that the 3 grade Xinjiang cotton price decline is more difficult to stop in the vicinity of 21000 yuan / ton, and the possibility of continued downtrend is bigger.

At the same time, the total cotton business inventory in Jiangsu should be over 100 thousand tons.