China Cotton Auction: Imported Cotton On Offer Increased To 52.36 Percent

MUMBAI (Commoditiescontrol): China Cotton Auction: Imported Cotton On Offer Increased To 52.36 Percent

Quantity of imported cotton once again increased on Monday and turnover remained above 99 percent as well.

Auction Quantity

Auction commenced on 3rd May. Cotton being auctioned is that of the years 2012-13 and 2013 - 14.

Total Quantity Offered	Total Quantity Sold	Total Domestic Cotton Sold	Total Imported Cotton Sold
441091.2	438734.9	180286.3	258448.6

Quantity in Metric Tons

From 3rd May to 23rd May 438734.9 tons of cotton or 99.47 percent of total quantity offered has been sold in

the auction. Share of Imported cotton sold so far stood at 58.91 percent on Monday down from 59.39 percent

on Friday, while Share of domestic cotton increased to 41.09 percent from 40.61 percent.

Quantity on offer continued to increase to 30071.8 metric tons yesterday from 27950 metric tons offered on Friday.

Average quantity offered until yesterday stood at 29406.08 tons. Quantity of domestic cotton offered decreased

further by 19.99 percent yesterday while imported cotton offered increased by 59.18 percent.

Ratio of Sales To Domestic and Imported Cotton

Ratio of Domestic Cotton being offered declined for a second day in a row to 47.64 percent yesterday as compared

to 64.42 percent of total offer on Friday. Imported cotton, on the other hand, has been registering increase in

quantity offered from 35.58 percent of total offer on Friday to 52.36 percent yesterday. State reserve had increased

the quantity of domestic cotton from 12th May but has again reversed the offerings by increasing the share of imported

cotton in the auction.

Of the 14317.10 tons of domestic cotton offered 13846.42 tons or 98.60 percent was sold while 100 percent of the

15733.21 tons of imported cotton was sold.

Auction Turnover And Staple Length

Total turnover started this week on a positive note at 99.93 percent as compared to 99.39 percent on Friday. However

it was still lower considering the 100 percent turnover seen last Monday.

Staple length increased marginally from 28.39 MM on Friday to 28.57 MM yesterday. The staple length has been largely

stabilizing in the 28 MM + category for the past four auction days.

Auction Price

Increase in Average auction price was impressive from 12124 yuan on Friday to 12362 yuan yesterday a rise of 1.96 percent.

Highest selling price continued to inch upwards by 0.30 percent to 13200 yuan while lowest selling price registered

an impressive 3.36 percent increase to 10780 yuan. Lowest selling price has been increasing over the past three trading

days.

Floor Price For Week 23rd To 27th May

Floor price for the coming week has been fixed at 11884 yuan per ton up by 45 yuan as compared to the previous week’s

floor price of 11839 yuan per ton.

Today’s Offer

Only first session offer details are available. No update on second session has been released till the time of writing this report.

1st Session – 15011.74 tons will be offered of which 9365.31 tons will be of domestic cotton while the remaining 5646.44

tons will be of imported cotton.

Exchange Prices With Volumes

ZCE Cotton September

ICE Cotton July

Fall in futures prices in both ZCE and ICE has been noted.

Impact

Imported quantity continued taking centre stage with state reserve increasing the quantity on offer. This has also led to

steady increase in the lowest selling price.

Buoyed by the response state reserve has increased the floor price this week and also increased the quantity on offer to

30000 tons for a second day in a row.

Futures market however has been declining both on ZCE and ICE which is contrary to the reports being. Reports suggest

that availability of good quality cotton is low and reserves of imported cotton with the state reserves are also low.

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