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More Import Cotton was Released by Reserve, Welcomed by Mills

2013-6-4
Import cotton release increased in volume, and its delivery due time is extended to 20 days from warehouses. Since 23rd May, reserve release daily target was improved to more than 100,000 ton, the 2011/12 season import cotton was increased to more than 30,000 ton daily, and together 68,400 ton for the week. This batch of import cotton has good quality with much higher fiber length and strength than domestic lint of equivalent grade in 2012/13 season, the low moisture regain rate and net weight clearing were also welcomed by textiles and all import release was sold out, brought up the weekly transaction rate to 40%, at 176,200 ton. By 24th May, reserve cotton release totaled 1.78 million ton in 2013 calendar year, meeting target of 27.8%.

From late of May, cotton in Xinjiang is in the third or fifth true leave period, the general growth is positive and some buds are seen already. Cotton in Yellow river and Yangtze regions is in seeding emergence and the third true leave period, some grow to the fifth true leave period. Drought in South of Shanxi, and Henan was eased, however, middle and north of Huabei region was in want of precipitation, middle and north of Hebei have drought currently. Rain storms happened in some area in Yangtze region with thunderstorm, gales or hailstones which impeded cotton seedling transplanting or growth, waterlog and lodging was seen there.

Last week, 20th/24th May, domestic cotton spot price was steady with little lint trade, and reserve trade dominated raw cotton replenishment. On 24th May, CC Index328 settled at 19,350 Yuan per ton, the same with last week; ZCE future nearby contract CF307 settled at 19,845 Yuan per ton, 10 Yuan up over the week.

As the import cotton price, FC Index settled at 92.9 cent/lb., 2.14 cent down over the week.
Source:China Cotton Association
 
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