The Long-Awaited Concrete Plan Of National Cotton Reserves Has Finally Been Settled.

The long-awaited concrete plan for national cotton reserves has finally been settled.

In April 15th, the national development and Reform Commission issued the notice on arrangements for rotation of state cotton reserves.

The announcement pointed out that from this year, the state reserve cotton inventory will be gradually and orderly adjusted, and the reserve scale will be adjusted to a reasonable level.

The specific rotation time is the national statutory working day of August 31st May 3, 2016 -2016, and the total output is not more than 2 million tons.

The quantity is not more than 30 thousand tons, and priority is placed on importing cotton wheels.

It is worth mentioning that the announcement pointed out that every year from March to August, the national statutory working day was arranged for the sale of reserve cotton for sale, which would also mean that the national cotton reserves would be normalized.

Specific details:

Way out: reserve cotton rotation in principle through the whole country.

The trading market will be sold on the open auction. If necessary, the country will increase other designated trading platforms to carry out the reserve cotton trade.

Round out time: in principle, every year from March to August, the national statutory working day will arrange for the sale of reserve cotton for sale.

From September to February, new cotton will be suspended during the listing period.

2015/2016 cotton reserve rotation time is the national statutory working day of May 3, 2016 -2016 August 31st.

Number of rounds: under normal circumstances, the number of daily sales of reserve cotton can not exceed 50 thousand tons, and the specific number of rounds must be based on actual pactions.

If the market price of domestic and foreign market has obviously increased rapidly for a period of time, the turnover rate of the auction sale of reserve cotton will exceed three days or more than 70% days a week, and the number of sales will be increased appropriately.

Cotton with long storage time is preferred.

In 2015/2016, the total output of reserve cotton is not more than 2 million tons. In principle, the number of daily sales is less than 30 thousand tons, giving priority to arranging imported cotton wheels.

The price of the rotation: the reserve price of the cotton sale is determined according to the market dynamics. In principle, the selling price is linked to the spot price of cotton at home and abroad. The cotton spot price index in the domestic market and the cotton spot price index in the international market are determined by 50% weight, adjusted once a week.

Notarial inspection: the reserve cotton for rotation is organized by the China Fiber Inspection Bureau to conduct a comprehensive notarization test on the quality and weight.

Round in plan: in order to optimize the quality structure of reserve cotton, a small number of cotton will be turned into high quality cotton after the output of cotton reserves.

It is arranged in the new cotton market (from September to February of next year).

According to the actual situation of cotton reserves in the previous year and the supply and demand situation of cotton market in the year, the number of round trips will not exceed 30% of the actual output in the previous year.

If the market is tight after the listing of new cotton, there will be no arrangement for the storage of cotton.

Turn in price: follow the market.

The specific arrangements will be announced later.