Market Observation: Sufficient Supply Of Cotton Resources Commercial Inventory Declines

The supply of cotton resources across the country is still abundant, but due to the uncertainty of the external environment, which has lowered the market's future expectations, textile enterprises are still cautious in purchasing cotton, and the growth of industrial inventory is relatively limited. By the end of March, the commercial inventory of cotton nationwide had reached 4.84 million tons, a year-on-year decrease of 19000 tons and a month on month decrease of 675000 tons. The cotton industrial inventory of textile enterprises in the warehouse was 959000 tons, an increase of 59000 tons year-on-year and 28000 tons month on month. Reciprocal tariff policy Disturb cotton price fluctuation

The special action plan to boost consumption issued after the National Two Sessions and the increased demand for cotton in the peak textile season provided support for the market, and the domestic cotton price fluctuated in March. At the beginning of the month, the international cotton price fell to a four-year low due to tariffs imposed by China and the United States; After that, it rebounded under the strong export data of American cotton rush shipment and the decline of American planting area intention in the new year. The trend was weaker than that at home, and the difference between domestic and foreign cotton prices was slightly expanded. China Cotton Price Index (CCIndex 3128B) monthly average price was 14885 yuan/ton, down 2237 yuan year-on-year and 15 yuan month on month; Cotlook The monthly average price of the A index was 77.7 cents/pound, down 22.1% year on year, 0.3 cents/pound month on month, and the tariff price of 1% was 13728 yuan/ton, which was 1156 yuan lower than the domestic cotton price. The price difference was 70 yuan larger than that of the previous month.

　　 National cotton planting intention will increase slightly in 2025

In March, China Cotton Association carried out the third national cotton planting intention survey in 2025, and the results showed that the area of cotton planting intention in China was 44.184 million mu, with a year-on-year increase of 0.4%. Among them, Xinjiang increased by 1.8%, the Yangtze River basin decreased by 16.2%, and the Yellow River basin decreased by 11.8%. The target price policy in Xinjiang has guaranteed the income of cotton farmers. The superimposed income of cotton is more stable than that of other crops, and the area of cotton planting intention has increased slightly; Due to the reduction of cotton planting profit and the difficulty in selling seed cotton, cotton farmers in the mainland are not willing to plant cotton, and the cotton planting area continues to shrink. In April, the meteorological conditions in Xinjiang were generally favorable for cotton spring sowing. The cotton sowing progress in Xinjiang was slightly faster than that in the whole year, and some of the seedlings had emerged. According to the survey of the China Cotton Association, the sowing progress in Xinjiang was 93.9% as of April 20, of which the sowing work in southern Xinjiang was nearing the end, and the northern and eastern Xinjiang were in the middle and later stages of sowing.

China Cotton Association participated in the "China Travel of Foreign Trade Quality Products" and initiated the revision of the quality price difference table

On April 24, the China Cotton Association participated in the national textile and clothing docking activity of "China Tour of Foreign Trade Products" sponsored by the Ministry of Commerce, and jointly issued the industry proposal with the China Textile Import and Export Chamber of Commerce, the China Textile Industry Federation, and the China Chain Store Association. On the 25th, in order to cooperate with the new version of the Compulsory National Standard for Cotton GB1103.1 ― 2023 was implemented, and the revision of the Quality Price Difference Table of the China Cotton Association was officially launched, focusing on the feasibility of adding short fiber rate indicators to the price difference table, the change of price difference between quality grades, and the price difference of long staple cotton.