Thanks To Favorable Policies, Cotton Prices Are Expected To Rise Again

Last week, the Political Bureau of the Central Committee held a meeting to analyze and study the current economic situation, deploy the next step of economic work, and release a clear policy signal to strive to complete the annual economic and social development goals and tasks; Later, the People's Bank of China lowered the deposit reserve ratio, and said that it would use various monetary policy tools, such as lowering policy interest rates and guiding the downward trend of quoted interest rates in the loan market, to create a good monetary and financial environment.

Driven by this, the domestic commodity market rose, and the domestic cotton price continued to rise.

The purchase of seed cotton across the country has been gradually accelerated, among which Xinjiang is still dominated by hand picking cotton, and the purchase of machine picking cotton has begun to increase; Mainland Shandong, Hubei, Hunan and other places have started to purchase and process. In that week, the increase of lint price led to the recovery of seed cotton price. The national average purchase price of seed cotton was 6.74 yuan/kg, down 26.6% year on year and up 1.2% month on month; The average purchase price of Xinjiang seed cotton was 6.74 yuan/kg, down 26.6% year on year and up 1.2% month on month; The average price in the mainland was 6.43 yuan/kg, down 24.5% year on year and up 0.3% month on month.

As of September 28, 2024, the cumulative processing volume of lint in China is 36000 tons, a year-on-year increase of 39.6%, including 34000 tons in Xinjiang, a year-on-year increase of 56.2%, and 2000 tons in the mainland, a year-on-year decrease of 47.3%.

In the international market, a new round of hurricanes landed in the United States, and the market output reduction was expected to strengthen again. The international cotton price rose slightly higher than the domestic cotton price, and the difference between domestic and foreign cotton prices narrowed slightly.

The weekly average price of China's cotton price index (CCIndex 3128B) was 15217 yuan/ton, up 265 yuan month on month;

　　Cotlook The weekly average price of index A is 85.1 cents/pound, 1.7 cents higher than that of the previous month. The 1% tariff discount is 14926 yuan/ton (including 200 yuan/ton port charges), which is higher than that of China Cotton Price Index (CCIndex 3128B) is 291 yuan lower, and the price difference is 27 yuan smaller than the previous week;

The average price of recent ICE cotton futures contracts was 73.2 cents/pound, up 2 cents month on month;

The average price of main futures contract CF501 in Zhengzhou was 14206 yuan/ton, up 439 yuan/ton month on month.