China Cotton Auction: 26.64 Percent Of Total Bales On Offer Sold

MUMBAI (Commoditiescontrol): China Cotton Auction: 26.64 Percent Of Total Bales On Offer Sold

China State Reserve set out to auction 2 million tonnes of cotton from 3rd May to end of August. The auction so far has had great success with total turnover standing at 99.33 percent. 532878.30 metric tonnes or 26.64 percent have been sold so far of the 2 million tons the State Reserves intended to sell.

Quantity sold however is dropping from the third week onwards. Quantity sold in the week 16th May to 20th May fell 7.46 percent week on week while for week 23rd May to 27th May it fell by 10.38 percent.

Auction Quantity

Cotton being auctioned is that of the years 2011 -12, 2012-13 and 2013 - 14.

Quantity in Metric Tons

From 3rd May to 27th May 532878.30 tons of cotton or 99.33 percent of total quantity offered has been sold in the auction. Share of Imported cotton sold so far fell further at 53.01 percent as compared to 54.43 percent on Thursday, while Share of domestic cotton increased to 46.99 percent from 45.57 percent.

Quantity on offer once dropped further lower ever since the auction started on 3rd May. Total offer was 20070.60 metric tons from 20099.20 metric tons offered on Thursday. Average quantity offered until yesterday fell further to 28234.24 tons from 28687.78 on Thursday. Quantity of domestic cotton offered increased by 2.80 percent after decreasing by 15.01 percent on Thursday. Quantity of imported cotton offered reduced by 7.49 percent after reducing by 37.41 percent on Thursday.

Ratio of Sales To Domestic and Imported Cotton

Ratio of domestic cotton on offer reached a new high of 83.64 percent from 82.24 percent on Thursday. Likewise, ratio of imported cotton on offer reached a new low of 16.36 percent from 17.76 percent.

Of the 16826.33 tons of domestic cotton offered 16587.60 tons or 98.81 percent was sold while 100 percent of the 3244.26 tons of imported cotton was sold.

Auction Turnover And Staple Length

Closing of the week had a small relief from falling turnover. Total turnover increased yesterday to 98.81 from 98.22 percent on Thursday. However turnover still remained lower than 99 percent which has been the norm in the first three weeks of the auction.

Staple length moved lower from 28.28 MM to 28.17 MM yesterday.

Auction Price

Average auction price bounced marginally higher yesterday. Price from the low of 12017 yuan on Thursday moved higher to 12058 yuan yesterday which was an increase of 0.34 percent.

Lower offerings of imported cotton and higher offering of domestic cotton is causing highest selling price to slowly reduce and lowest selling price to slowly improve. Highest selling price decreased by 0.84 percent to 13060 yuan from 13170 yuan on Thursday. Lowest selling price increased by 0.34 percent to 10930 yuan from 10740 yuan.

Floor Price For Week 30th May To 3rd June

Floor price for the coming week has been fixed at 12028 yuan per ton up by 144 yuan as compared to the previous week’s floor price of 11884 yuan per ton.

(By Commoditiescontrol Bureau; +91-22-40015522)