Development and Reform Commission: Start the new cotton collection and storage at the appropriate time from September 1

On August 7, it was learned from the China Cotton Textile Industry Association that the National Development and Reform Commission has made clear the new year’s cotton purchase and storage policy, that is, the new cotton purchase and storage will start at the appropriate time from September 1st and be purchased at a fixed price of 19,800 yuan/ton.

It is understood that in order to provide a good environment for the development of cotton and textile industries, further improve the country's macro-control level, and ensure the effectiveness of regulation and control, related departments will further improve the relevant system of storage and storage, and the specific implementation plan will be announced in late August.

At the end of March this year, eight departments including the National Development and Reform Commission, the Ministry of Finance, and the Ministry of Agriculture jointly issued this year's cotton temporary storage plan and decided to list 13 major cotton producing provinces (regions and cities) in Anhui, Xinjiang, and Shandong since the listing of new cotton in 2011. Implementation of the temporary purchase and storage system, temporary storage and storage price for the standard lint to library price of 19,800 yuan per ton, the implementation time is from September 1 this year to March 31 next year.

On August 4, the Department of Economic Affairs of the National Development and Reform Commission convened a meeting of relevant departments, industry associations, and related companies to study the preparation of temporary purchase and storage of cotton, including the calculation of the reference price for the acquisition of seed cotton and the implementation measures for the storage and purchase of preplanned transactions.

The meeting held that the determination of seed cotton acquisition reference price, we must first protect the interests of cotton farmers, but at the same time we must also consider the reasonable cost of processing enterprises; cotton temporary purchase and storage transaction implementation methods, in accordance with the principles of openness, fairness and fairness to ensure the smooth operation of storage and storage get on. The meeting stressed that after the listing of New Cotton this year, according to the changes in the market, timely start temporary storage plans, according to the standard level of lint 19800 yuan / ton of storage and storage prices, open storage.

However, at present, the domestic spot price index for cotton has been continuously lower than the reserve price. On August 7, China's cotton price index continued to weaken, with the 328 class reported 19,692 yuan/ton, down by 24 yuan.

Analysts pointed out that the State Reserve has already begun preparations for the start of storage and pre-planning, but from the previous year's storage situation, in the early period of storage and storage can not stop the price down, only after a certain amount of storage and storage, the role of purchasing and storage Reflected. Due to the current abundant supply of cotton and weak demand, domestic cotton prices are still facing downward pressure.

Earlier, the China National Reserve Cotton Management Corporation (hereinafter referred to as “China Reserve Cotton”) stated that at present, the overall growth of major cotton producing areas across the country is flat or slightly better than the same period of last year. The prospects for yields are optimistic, supply is abundant, and the textile industry as a whole is deep. Demand "cold winter", as long as the normal weather in the later period, the domestic cotton price will continue to face downward pressure.

China Reserve Cotton pointed out that in the coming month, there will be abundant supply of Xinjiang cotton, and it is expected that the decline in Xinjiang's cotton prices in Level 3 will be more difficult to stop near 21,000 yuan/ton, and it is more likely to continue the weak downward adjustment. At the same time, the total amount of cotton business inventories in Jiangsu Province should be more than 100,000 tons.