On March 6th, China Reserve Cotton Management Co., Ltd., the National Cotton Exchange Market, and China Fiber Inspection Bureau jointly issued the “Announcement on Organizing the National Reserve Cotton Turnover Sales for 2017/2018”, stating that “the buyer participating in the reserve cotton turn-out transaction is The legal person enterprises registered by the State Administration for Industry and Commerce have good credit status and no bad business records. The stones hanging in the hearts of cotton companies and traders finally landed. Will this year's round turn out to be very lively? Will cotton prices continue to rise?

On March 5th, the ICE cotton futures reached a strong daily limit, Zheng cotton once reached 15,500 yuan/ton, which injected new vitality into the dull cotton market. March 6 Akesu hand pick cotton double 28 offer about 16100 yuan / ton, Kuitun machine picking cotton double 29 offer is also 16,000 yuan / ton or more; real estate cotton mainstream sales price 14100-14500 yuan / ton. The rise in spot prices after the Spring Festival seems to be expected in the industry. Will the cotton price continue to rise after the publication of the announcement?

According to the data from the National Cotton Market Monitoring System, as of March 2, Xinjiang sold 2.424 million tons, which accounted for about 48% of Xinjiang's total cotton production in 2017/18. Another view was that the current Xinjiang cotton sales schedule counted on contracted lint. It is expected that the progress will reach about 75%. This seems to release the same signal - Xinmian sales are no longer the "old".

Since the new cotton sales predicament has gradually cracked, the operating priorities of cotton enterprises and traders will certainly shift to reserve cotton. It is reported that at present, the cotton enterprises that have completed processing of lint cotton in the Mainland have little sales pressure on real estate cotton, and now they have begun to arrange for participation in the related matters of reserve cotton wheels, and they will actively participate in the process. Some cotton enterprises that are still acquiring and processing said that they will continue to pay close attention to transaction prices in the early stages of the turnaround, especially the transaction price of real estate cotton. Once the price and quality are appropriate, they will participate in the rotation at the right time; even if some of the reserve cotton was sold in large quantities last year. Traders are also gearing up for enthusiasm.

The participation of cotton companies and traders will make reserve cotton more lively. Whether it is low-priced real estate cotton or popular Xinjiang cotton, will be more concerned about by the participants, when the cotton market may be even more exciting 2017.

In order to ensure cotton supply, stabilize cotton prices, and make vital contributions to the vitality of domestic cotton spinning enterprises, reserve cotton has been destocked for two years. What new benefits will be brought to cotton spinning enterprises in 2018? we hope!

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