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Cotton Grows Well; Reserve Cotton Release at Larger Volume

2013-7-16
Since summer, thunderstorms brought threats to cotton security. On 1st July, cotton modules on open yard caught fire by lightning strike in agent warehouse of China National Cotton Reserves Cooperation, in Houma, Shanxi Province. The burned area was 10,500 square meters, causing large loses. China Cotton Association made a warning statement on security precautions especially fire safety to prevent likely accident.

By July, cotton nationwide came to squaring or flowering periods. High temperature and appropriate soil moisture was good for cotton growth. In Yangtze region, cotton development was improved by better weather and field management. In Huabei and Huanghuai regions, precipitation brought flood to some areas and affected cotton growth. During this vital moment of cotton growth, field management such as topping, fertilizer usage, field drainage would be very helpful.

The end of July will be the close of reserve release, the target of which increased by last week to 1.22 million ton, and the actual trade was 220,000 ton, meeting target by 18.07%, among which 89,000 ton of import cotton, 80.1% of trading rate. By 5th July, reserve cotton release in 2013 totaled 2.73 million ton, 27% of target met, and 530,000 ton of import cotton.

Currently cotton yarn price was weak in traditional off season for textile, at the same time, cotton allocation was adjusted by mills for less cotton usage. On 8th July, CC Index 328 settled at 19,280 Yuan per ton, 20 Yuan down over the week; ZCE cotton futures nearby contract CF307 settled at 20,465 Yuan per ton, 440 Yuan up over the week.

As for import cotton price, FC Index settled at 95.94 cent/lb, 1.31 cent up over the week.
Source:China Cotton Association
 
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