China Cotton Auction: 32 Percent Of Total Auction Quantity Offered So Far

MUMBAI (Commoditiescontrol): China Cotton Auction: 32 Percent Of Total Auction Quantity Offered So Far

Total offer of reserve cotton stood at 6.41 lakh metric tons as on 2nd June. China had intended to sell 2 million tons from its reserve. Thus it has been successful in offering nearly 32 percent of the 2 million tons.

Spot Market Update

Domestic textile plants gaining access to reserve cotton is likely to increase cotton used in mills in China.

USDA has estimated cotton consumption in China for 2016-17 to be at 33.5 million higher by 3 percent on account of mill usage. USDA expects China cotton yarn imports to be lower for 2016-17 but rate of decline will be slower than that seen in 2015-17.

Imports of raw cotton by China are expected to remain at 4.5 million bales in 2016-17 as compared to 4.25 million bales in 2015-16 and 8.28 million bales in 2014-15. Chinese governments is planning to replenish reserve cotton with high quality cotton from the fresh crop. If not, then they will procure from US and Australia.

China ending stocks of cotton are estimated to be at 56.7 million bales which will be a 10 percent decline year on year. However even after the decline China will account for 60 percent of world ending stocks.

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

Total Quantity Offered	Total Quantity Sold	Total Domestic Cotton Sold	Total Imported Cotton Sold
641272	632634.9	331178.2	301456.8

Quantity in Metric Tons

Total sales as on 2nd June stood at 6.32 lakh metric tonnes which is 98.65 percent of total quantity offered. Total domestic cotton sold stood at 3.31 lakh metric tonnes which is 51.64 percent of total quantity offered while total imported cotton stood at 3.01 lakh metric tonnes which is 47 percent of total quantity offered.

Share in terms of total sales was 47.65 percent for Imported cotton and 52.35 percent for domestic cotton.

Quantity on offer was higher yesterday at 24446.40 metric tonnes as compared to 20260.4 metric tonnes on Tuesday.

Average quantity offered from 3rd May to 2nd June was 27881.39 tonnes.

Quantity of domestic cotton offered increased by 18.21 percent while no imported cotton was offered.

Ratio of Sales To Domestic and Imported Cotton

Ratio has been 100 percent domestic cotton and zero percent imported cotton for the past two auction days.

Of the 24446.40 tons of domestic cotton offered 23838.16 tons or 97.51 percent was sold.

Auction Turnover And Staple Length

Total turnover after reaching the highest point for this week at 99.53 percent on Wednesday was sharply lower at 97.51 percent.

Staple length of cotton on offer has been steadily decreasing and was at 26.85 MM yesterday, the lowest ever since the auction started.

Auction Price

Average auction price auction price dropped to its lowest level at 11891 yuan. The previous low was on 26th May when average auction price was 12017 yuan.

Highest selling price was higher yesterday at 13040 yuan an increase of 0.38 percent. Lowest selling price dropped sharply by 2.52 percent from 11100 yuan to 10820 yuan.

Floor Price For Week 30th May To 3rd June

Floor price for the week 30th May to 3rd June 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.

Today’s Offering

Total cotton on offer today is at 19088.44 tonnes. No imported cotton is being offered today only domestic cotton.

Ist Session – 9535.94 tonnes of domestic cotton will be offered.

2nd Session – 9552.50 tonnes of domestic cotton will be offered.

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