CNCotton: Domestic physical price lost ground during the past week. ZCE and CNCE market experienced narrow consolidation. Cotton yarn price posted a moderate decline and the rally of polyester staple slowed.
According to the survey by the National Cotton Market Monitoring System with the 11 provinces (56 counties/cities), by May 10, cumulative seed cotton procurement totaled 1745 tons, 96.77% of the entire production. This is 0.08% higher than previous week but 1.87% lower than year ago level.
According to another survey with the 66 mid-large size cotton processing enterprises, by May 10, the progress for the new cotton s processing was at the rate of 94.02%, 1.95% higher than previous week and a 5.38% decline from year ago level. Average selling progress rate recorded 59.76%, up 1.31% from a week earlier but a 12.35% decline year on year.
Based on a 5.7 mil ton crop, cumulative lint cotton procurement has reached 5.464 mil tons, a 5,000 tons increase compared to previous week. Cotton processing was up 11,000 tons to 5.14 mil tons and cumulative selling increased 80,000 tons to 3.27 mil tons.
Domestic market continued a downturn after the Labor Day holiday. Cotton enterprises liquidated their inventories at lower cash price while spinners purchase remained slow. The weak spot price, combined with a building of certified stocks and a lack of quota pressed CNCE and ZCE prices into a narrow trading range. On May 11, CNCotton B index average price declined 58 to 14091 yuan per ton, a decrease of 0.41% from previous week. MA0606 fell 162 to 14,175 yuan per ton, reflecting a 1.13% decrease.
Domestic cotton yarn price was weaker this past week as 32S carded cotton yarn quoted at 19,490 yuan per ton, down 30 yuan from previous week. Polyester staple price surged 20 to 10,670 yuan per ton.
Domestic textile market continue to lag behind after the May Day holiday. The low-stock strategy by the spinners forced some cautious cotton enterprises to undersell the stocks. Volume of offtake was basically unchanged, but the selling progress was 17.13% lower than year ago level, according to a survey by National Cotton Market Monitoring System. Rumors have again surfaced that NDRC is not scheduled to issue additional import quotas. Despite this, the ample domestic supply and an increasing arrival of imported cotton, coupled with mills inactive purchase, denies any potential surge in domestic cotton price.
