Deputy Director Of The National Development And Reform Commission: 4

It is learned that China plans to restart the auction of reserve cotton in the second half of 4, which is a pressure on cotton prices.

China's total cotton reserves have reached 11 million tons, the highest in the world.

Si Yinjian, deputy director of the economic and Trade Commission of the national development and Reform Commission, told reporters that it will be held in late 4.

Auction.

However, the quantity and quality of cotton auction has not been announced.

Most of the national cotton reserves will be sold to domestic buyers, but the reduction in demand for imported cotton by Chinese buyers may also affect global cotton prices.

Because of the unclear quantity and quality of the auction, it is not yet possible to judge the auction of State Cotton stores.

How much impact it brings.

This is the second round of China's attempt to reduce inventories.

Last year, 7-8 months, the Chinese government tried to auction 1 million tons of state cotton, but the result was not as good as expected, only 63413 tons, because the buyer said the price was too high.

However, China's market supply is tight this year because the government has tightened import quotas for cotton, reducing the number of overseas cotton entering China, and China's cotton imports in February dropped by 65% compared with the same period last year.

The Chinese government has begun to reform agriculture, trying to reduce inventory and keep prices consistent with international standards.

Moreover, as time goes on, the quality of cotton will decline, so the government will not be able to store it all the time.

Earlier, the reporter quoted Yin Jian as saying that the NDRC plans to sell more high-quality cotton and will give priority to the sale of imported cotton.

China's new round of national cotton auction is expected to drag down the ICE cotton contract.

So far, the ICE cotton contract has fallen by about 5%.

Cotton prices remained at the current level until other news about China's auctions came out.

TobinGorey, director of agricultural strategy at CBA, said: "

The quality of the auctioned cotton is of particular interest. "

"If the majority of the inventory is high quality cotton, it will replace China's import demand."

He said.