Sign in | Join free

Weekly report: reserve release loses momentum; reserve purchase commences

Weekly report: reserve release loses momentum; reserve purchase commences Source:
Date: 19-09-2012
Visits: 275
Very Poor

Last week, weather in cotton areas nationwide was positive for drying of new arrivals. The reserve purchase has started with transaction from Xinjiang and Shandong provinces in the first week, one month in advance compared with last year. Reserve release continued with decreasing average bidding prices, lower than spot price, and less than 20% of disposal was completed in someday. The weak performance of downstream market drove domestic futures lower and increase rate of spot price slowed down.

During mid of September, most cotton areas were blessed with fine weather, with suitable temperature and abundant sunlight for boll opening, picking and drying. The cold air covering Jianghuai, Jianghan and Yangzte basins brought transient rainfalls, which resulting no large damage. Currently, cotton picking has started in full swing in Xinjiang and ginners enlarged their purchase generally.

On 10th September, the temporary reserve of 2012/13 season was triggered. New arrivals were still in small volumes, the transaction happened in Xinjiang and Shandong, in the last two days of the week. By 14th September, running total of 2012/13 season reserve purchase was 2,920 ton, including 520 ton from Xinjiang and 2,400 ton from Shandong province. The reserve release auction came to its second week with less momentum. On 14th the knock down price was 77 Yuan lower than that day??s CC Index, with only less than 20% target volumes was sold. By 14th, the running total of release was 437,056 ton, with 217,131 ton completed in transaction, taking percentage of 49.68%. By average of all deals done, the grade was 3.07, length 27.88, weighting price 18,564 Yuan per ton, and concluding price converted in type 328 was 18,637 Yuan per ton.

Last week (10th -14th September), domestic cotton futures trended downward. By weekend, CNCE nearby contract MA1209 settled at average price of 18,821 Yuan per ton, 178 Yuan down over the week. ZCE cotton futures nearby contract CF209 settled at 18,590 Yuan per ton, 65 Yuan down over the week. Domestic lint spot price slowed down its rise, by weekend CC Index328 settled at 18,637 Yuan per ton, 6 Yuan up over the week. According to CCA cotton processing industry branch, for this week price of new arrivals was quite similar with last week, the weekly average was 8.45 Yuan per kilo for inland type 328 and 8.4 Yuan per ton for Xinjiang type 329, 0.04 Yuan up than 8.36 Yuan last week. The daily purchase of ginners increased and some started to sell to reserve and market.

As for import cotton price, FC Index328 was 88.2 cent per pound by weekedn, which was 14,288 Yuan per ton under 1% tariff, 4,349 Yuan lower than domestic equivalent; and 15,069 Yuan per ton under sliding duties, 3,568 Yuan lower than domestic equivalent.
like 189 Unlike 21
Users Comments
No comments to display
Are you sure you want to delete this comment.
Add your comment
User Name:
Email: Will not be published
Rate This article:
Maximum 3500 characters
Your name
Your email address
Your friend email address
  • /images/ourservices/125-600/pricetrend.jpg
  • /images/ourservices/125-600/product.jpg
  • /images/ourservices/125-600/videos.jpg
Suntex Asia Limited
32366 Users
have already joined Shouldn't you?
Full registration will provide you access to all our free services. It takes only one minute and it is free Go here
Quick registration (it's free)
Accesss to some of our free services
Select membership
Full Name
User Name
Enter the code
(Note: If you can't read the letters, reload the page to generate a new one.)
terms and conditions
Members Login
Already registered
Forgot your password
golden fees
Enter your e-mail address
Choose your room