China state reserve auction result
Today once again saw more imported cotton (30,951 tonnes) included in the state reserve sales catalogue (109,607 tonnes). Indications are that bidding was less intense than yesterday. Nevertheless, sales amounted to some 46,159.8 tonnes, raising the cumulative figure during the current auction series to around 1,780,001 tonnes. According to our estimate, the quantity held in government control has been reduced to less than 9.29 million tonnes.
A report shows purchases by mill as at yesterday of 1,717,619 tonnes(the total differs slightly from the sum of the daily auction figures) .
Two mills had used up their entitlement to purchase cotton through to the end of July and 76 had taken up 50 percent or more. Weiqiao, which has the biggest entitlement, remained at 22 percent. The latest list can be found here.
The China National Cotton Reserves Corporation has announced that as the location of imported stocks is more concentrated, and delivery times can be longer, an extended period will be allowed for delivery of imported cotton from state reserve warehouses.
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