CNCotton: During the week ending August 4, domestic cotton price went down slightly; ZCE futures rebounded a little; cotton yarn price remained stable while polyester staple price went up continously.
1. Nearly 80% cotton was sold out.
According to the sample survey of National Market Monitoring System (NCMMS) among 608 cotton growers of 11 provinces as of August 2, cumulative sales of seed cotton reached 1,770.96 tons, accounting for 98.21% of their total inventory, up 0.18% from the previous week but down 0.43% year on year. Another survey of NCMMS among 66 ginners shows that the ginned seed cotton accounts for 99.15% of their total inventory, up 0.12% from the previous week but down 0.25% year on year, with sold cotton accounting for 76.96% of their total inventory, up 1.37% from the previous week but down 14.29% year on year.
Based on the cotton production of 5.7 million tons and harvested cotton accounts for 99.05% of the total, procured cotton had reached 5.54 million tons, up 10,000 tons from the previous week, with ginned cotton reaching 5.498 million tons, up 17,000 tons from the previous week. Cumulative lint cotton sales reached 4.27 million tons, up 90,000 tons from the previous week.
2. Spot price went down slightly while ZCE futures rebounded a little.
Bundling sales of Xinjiang cotton with import quota is being clarified by the market. As a result, the sales of Xinjiang cotton grew faster. However, being influenced by the rumor about the old cotton auction, many merchants had to cut price. ZCE futures rebounded a little due to the uptrend in the New York futures market. Merchants and ginners tried to speed up sales by cutting price, which got active respond from mills. On August 3, T328 was averaged at 13,942 yuan/ton (including freight), down 25 yuan or 0.018% from the previous week. ZCE September was settled at 14,205 yuan/ton, up 140 yuan or 1% from the previous week. CNCE August contract was averaged at 14,115 yuan/ton, down 29 yuan or 0.21% from the previous week.
3. Cotton yarn price remained stable while polyester staple price went up continously.
32S carded cotton yarn was offered at 19,395 yuan/ton, showing no change from the previous week. Polyester staple price was offered at 12,028 yuan /ton, up 285 yuan or 2.42% from the previous week.
4. Outlook
Some cotton bolls opened in Yuncheng, Shanxi province in early August. Large quantity of seed cotton is expected to be available in the market in the region within 15-20 days. According to NCMMS, domestic commercial cotton stock remains 1.38 million tons as August 2, which includes 590,000 tons of Xinjiang cotton. Being saddled with old cotton auction and new crop of 2006/07, existing cotton stock is hard to find a good price in August
1. Nearly 80% cotton was sold out.
According to the sample survey of National Market Monitoring System (NCMMS) among 608 cotton growers of 11 provinces as of August 2, cumulative sales of seed cotton reached 1,770.96 tons, accounting for 98.21% of their total inventory, up 0.18% from the previous week but down 0.43% year on year. Another survey of NCMMS among 66 ginners shows that the ginned seed cotton accounts for 99.15% of their total inventory, up 0.12% from the previous week but down 0.25% year on year, with sold cotton accounting for 76.96% of their total inventory, up 1.37% from the previous week but down 14.29% year on year.
Based on the cotton production of 5.7 million tons and harvested cotton accounts for 99.05% of the total, procured cotton had reached 5.54 million tons, up 10,000 tons from the previous week, with ginned cotton reaching 5.498 million tons, up 17,000 tons from the previous week. Cumulative lint cotton sales reached 4.27 million tons, up 90,000 tons from the previous week.
2. Spot price went down slightly while ZCE futures rebounded a little.
Bundling sales of Xinjiang cotton with import quota is being clarified by the market. As a result, the sales of Xinjiang cotton grew faster. However, being influenced by the rumor about the old cotton auction, many merchants had to cut price. ZCE futures rebounded a little due to the uptrend in the New York futures market. Merchants and ginners tried to speed up sales by cutting price, which got active respond from mills. On August 3, T328 was averaged at 13,942 yuan/ton (including freight), down 25 yuan or 0.018% from the previous week. ZCE September was settled at 14,205 yuan/ton, up 140 yuan or 1% from the previous week. CNCE August contract was averaged at 14,115 yuan/ton, down 29 yuan or 0.21% from the previous week.
3. Cotton yarn price remained stable while polyester staple price went up continously.
32S carded cotton yarn was offered at 19,395 yuan/ton, showing no change from the previous week. Polyester staple price was offered at 12,028 yuan /ton, up 285 yuan or 2.42% from the previous week.
4. Outlook
Some cotton bolls opened in Yuncheng, Shanxi province in early August. Large quantity of seed cotton is expected to be available in the market in the region within 15-20 days. According to NCMMS, domestic commercial cotton stock remains 1.38 million tons as August 2, which includes 590,000 tons of Xinjiang cotton. Being saddled with old cotton auction and new crop of 2006/07, existing cotton stock is hard to find a good price in August
