CNCotton Weekly Summary (July.21)

     CNCotton Weekly Summary (July.21)

    Beijing, CNCotton: This is the second part of a two-parts story posted on July 21.

    Investment in the private sector continued a growth, but investment in the state-owned sector dropped dramatically.

    Beijing, CNCotton: Domestic cotton stock decreased further during the past week and was accompanied by increased mills'inquires. In these conditions, cotton price maintained a moderate increase.

    On July 22, the Chinese Yuan was revalued 2 percent against US dollars that cause dollar/RMB rate to 1:8.11. China is moving to a managed floating exchange rate based on market supply and demand, with reference to a basket of currencies. Also, China released an additional 700,000 tons of the import quota on the same day. At present, market appeared quiet in response to the news. Cotton price increased slightly, however, the longer-term price will face pressure.

    Marketing participants were not optimistic about textile export to U.S. during the second half of this year. Zhengzhou futures and CNCE trading collapsed. On July 22, October future of Zhengzhou futures closed at 14045 yuan per ton, down 475 yuan from week ago level, which equals to a 3.27 percent decrease. CNCE price averaged 13827 yuan per ton, down 377 yuan (2.65%) compared with previous week.

    According to a survey from 60 cotton enterprise, the rate of cotton selling progress reached 94.48 percent this past week, and total cotton sales reached 5.97 million tons, up 110,000 tons from week ago level. This week, CNCotton A (average inland price of T229) was 13969 yuan, up 42 yuan from week ago level. CNCotton B (average inland price of T328) was up 51 yuan to 13594 yuan. The average price of T428 was 12870 yuan, up 45 yuan from week ago level; the price of T527 up 72 yuan to 11995 yuan. (W04)

 

Source: www.cncotton.com

(2005-7-26)

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