From December 27, 2019 to January 9, 2020, there has been no transaction in the reserve cotton rotation for 9 consecutive working days. A survey was conducted on the Xinjiang cotton rotation into the China Cotton Textile Industry Association, and the information is summarized as follows:
Cotton traders
The main reasons for the low transaction rate of Xinjiang cotton rotation are as follows:
1. Since December 27, 2019, the price of cotton futures has been higher than the maximum price of reserve cotton incoming bidding, and the reserve cotton incoming price has no advantage;
2. The quality premium of cotton for storage is lower than that of futures;
3. The quality requirements for cotton for storage are stricter than those of futures alternative delivery products. For example, the color grade is white cotton. The proportion of grade 1, 2 and 3 is not less than 80%, the micronaire value is required to be grade A, the proportion of grade B is not less than 90%, and does not contain grade C1, etc. These requirements result in a small amount of Xinjiang cotton that can be delivered for storage. ;
4. The packaging of cotton for storage requires the use of cotton cloth bundled outside, and this year at least half of Xinjiang’s cotton is bundled inside;
5. Currently, there is only one collection and storage warehouse in Xinjiang, and the rest are in the mainland. Storage companies need to transport cotton to the mainland by themselves, and storage in the mainland warehouse requires a second public inspection, which increases the uncertainty of cotton indicators and reduces Traders are enthusiastic about deposits.
In this regard, cotton traders suggest:
1. After the cotton reserves are handed over in Xinjiang, the relevant responsible units will centrally move them to Mainland warehouse;
2. Cancel the secondary public inspection;
3. Quality premium refers to cotton futures premium;
4. Release policy expectations in advance to reduce market speculation;
5. Appropriately rotate some foreign cotton to increase cotton reserves in the national reserve quantity.
Cotton spinning enterprises
Cotton spinning enterprises said that the rotation of cotton reserves has a positive impact on the market, but it also Expressed certain concerns:
1. The quality of cotton will decline in 2019, and the cotton reserves will be high-quality cotton, which will lead to a further reduction of high-quality cotton in the market;
2. Pay close attention to the price and beware of market speculation, causing price fluctuations and driving up cotton prices;
3. Cotton reserves enter the second round Although the sub-public inspection leads to more uncertainty in cotton indicators, it is a normal procedure for rotation.
Textile enterprises
1. While receiving Xinjiang cotton, they also receive some high-quality imported cotton. In 2020, the cotton reserves will continue to be rotated out, and the rotation of cotton reserves into and out of the rotation will be normalized;
2. Strictly prevent “black box” operations and ensure the openness and transparency of the cotton reserves into the rotation;
3. During the rotation period of cotton reserves, the reported reserve cannot be included in the national reserve. </p
