Views:0 Author:Site Editor Publish Time: 2019-04-26 Origin:Site
On April 23, the National Food and Strategic Reserves Administration and the Ministry of Finance announced about state cotton auction and reserve in 2019. The state cotton reserves sales will be from May 5 to Sep 30, with a total quantity of about 1.00 million tons. In principle, daily selling volumes are about 10,000 tons. The calculation of base selling price of reserved cotton keeps unchanged, and the price continues to be related with international cotton prices. In additional, the announcement also states that the state cotton reserves may be implemented, according to actual market situation and supply and demand.
Then, for this announcement, is there any difference compared with previous years, and how to interpret it?
|Release institution||National Development and Reform Commission and Ministry of Finance||National Food and Strategic Reserves Administration and the Ministry of Finance|
|Traders||No restriction||No restriction||Not allowed from Sep||Not allowed from Jun 4||No restriction|
|Daily selling volume||No more than 50,000 tons||30,000 tons||30,000 tons||10,000 tons|
|Planned total quantity||1 million tons||No more than 2 million tons||To increase the daily selling volumes and extend the selling time if the trading ratio is above 70% for 3 days within one week||1 million tons|
|Task||Consuming reserved cotton gradually||Guarantee market supply||Rotation|
|Trading volume||60kt||2.659 million tons||3.23 million tons||2.51 million tons||?|
1. The National Food and Strategic Reserves Administration becomes the dominated institution.
2. The state cotton auction is confirmed late this year, but market players have anticipation.
3. The time is confirmed to last to September.
4. Traders may be allowed to take part in the auction in 2019.
5. Daily selling volumes decline to 10,000 tons.
6. The total quantity of cotton auction is about 1 million tons. The task of de-stocking has been complete, and the task for late market is the rotation.
Key point one: the quantity