Beijing, CNCotton: Domestic physical price drifted lower this week. ZCE and CNCE market posted sharp losses. Cotton yarn price maintained stable and polyester staple experienced another surge in price.
As of April 26, cotton ginning finished 92.07%, up 1.87% from previous week but down 7.33% from year ago level. Sales have accomplished 58.45% of the total procurement, up 1.24% from last week but 9.25% lower year on year.
Assuming a 5.7 mil ton crop and a 99.05% harvested crop, cumulative lint cotton procurement is estimated at 5.459 mil tons, 2,000 tons higher than week ago level. Cotton ginning increased 110,000 to 5.03 mil tons and selling was up 70,000 to 3.19 mil tons.
CNCotton-S averaged 13760 yuan per ton for the week ending April 21, down 23 or 0.17% from a week earlier.
Spinnerspurchase fail to reach a high level as noted in previous years. The building of domestic supply and a weakening confidence resulted in a lower cash price. Poor physical offtake, combined with dramatic declines of NY futures served as a major blow to ZCE and CNCE prices, which recorded sharp losses this week. On April 27, T328 for delivery at mill averaged 14149 yuan per ton, down 16 or 0.11% from previous week. June futures at ZCE futures dropped 290 or 1.99% to 14305 yuan per ton. MA0606 averaged 14337, down 261 or 1.79% from a weak earlier.
This week, 32s carded cotton yarn averaged 19520 yuan per ton, down 10 yuan or 0.05% from a week earlier. Polyester staple surged 60 to 10650 yuan per ton.
Physical offtake failed to expand ahead of the upcoming May Day holiday. Textile mills are generally inclined to make much purchase as both NY and ZCE prices collapsed. Loan interest hikes announced by Central Bank has made any stabilization of cash price impossible in the holiday period.
