Cotton prices rose sharply in 2021, both at home and abroad, hitting a near 10-year high. The national cotton output is stable slightly down, the new cotton purchase price runs high, the quality is better than last year. Domestic policies remain stable, the rotation of cotton reserves is carried out in an orderly manner, imports continue to increase, and market supply is relatively sufficient.
First. Cotton prices rose to record highs
In 2021, affected by macroeconomic situation at home and abroad, continued strong demand for cotton and other factors, cotton prices rose sharply. China's cotton price index (CCIndex3128B) reached a 10-year high of 22,713 yuan/ton on November 18, and then began to fall gradually. On December 31, China's cotton price index CCIndex(3128B) closed at 22,107 yuan/ton, up 47.7% year on year; The annual average price was 17,892 yuan/ton, up 38.4% year on year. During the year, spot prices on the international market rose slightly faster than domestic prices. On December 31, the CotlookA index reached 127.20 CENTS/lb, up 50.4% year on year. The annual average price was 101.4 cents/lb, up 40.9% year on year. The annual average price difference between internal and external cotton is 1759 yuan, the largest price difference is 3887 yuan, the smallest price difference is 523 yuan.
Second, the purchase price of seed cotton rose significantly, and the quality of new cotton improved
Since the listing of new cotton in 2021, affected by cotton season and higher spot prices, the purchase price of seed cotton has risen sharply year-on-year. As of November 30, the average purchase price of grade 3128 seed cotton of 400 type cotton processing enterprises in China was 10.1 yuan/kg, up 55% year-on-year. By region, the average purchase price in Xinjiang was 10.1 yuan/kg, up 55% year on year. The average purchase price on the mainland was rmb9.5 / kg, up 53% year-on-year.
According to China fiber quality monitoring center data show that this year's cotton quality significantly improved. As of December 31, the length of 29 mm and above cotton accounted for 65.9%, 42.1 percentage points higher than last year; White cotton grade 3 and above accounted for 85.2%, 0.7 percentage points higher than last year; Micronaire A+B grade accounted for 85.7%, 18.8 percentage points higher than last year; The proportion of rupture strength grade or above was 44.8%, 23.2 percentage points higher than that of last year.
Three, reserve cotton round out orderly, enterprises actively bid
In 2021, a total of 1,203,600 tons of cotton reserves were traded in round shipment, which was carried out in three times: From July 5 to September 29, the listed total was 631,000 tons, 100% of which was traded; From October 8 to November 9, a total of 646,500 tons of central reserve cotton was put into the market in 2021, and 395,600 tons of cotton was traded, with a turnover rate of 61%. From November 10 to 30, the second batch of central cotton reserves put a total of 266,000 tons of listed, 177,000 tons of transactions, the transaction rate of 67%, the increase in imported cotton, Xinjiang cotton and imported cotton are 100% transaction.
From December 1, 2020 to March 31, 2021, the rotation of cotton reserves was not started due to the difference between internal and external cotton prices exceeding 800 yuan/ton.
Four, Xinjiang cotton output continues to increase
Data released by the National Bureau of Statistics showed that the country's total cotton output in 2021 was 5.731 million tons, down 180,000 tons or 3.0 percent from 2020. Among them, xinjiang's cotton output was 5.129 million tons, down 32,000 tons or 0.6 percent from the previous year, accounting for 89.5% of the national total and 2.2 percentage points higher than the previous year. China's cotton planting area continued to decline. In 2021, China's cotton planting area was 45.422 million mu, 2.112 million mu less than the previous year, down 4.4 percent. By region, the cotton sown area in Xinjiang increased, mainly because the state continued to implement the cotton target price subsidy policy in the region, coupled with the rise in cotton prices since last year, farmers' enthusiasm for planting cotton was relatively stable. The cotton sown area was 37.591 million mu, an increase of 62,000 mu over the previous year, an increase of 0.2%. In other cotton areas, affected by factors such as planting efficiency and planting structure adjustment, the sown area of cotton was 7.831 million mu, down 21.7 percent, declining for 13 consecutive years since 2009. Xinjiang's sown area accounted for 82.8 percent of the country's total, up 3.9 percentage points from the previous year.
V. Cotton imports increased year on year
According to customs statistics, China imported 2.008 million tons of cotton in the first 11 months of 2021, up 11.4 percent year-on-year. Among the countries of origin, the United States ranked first, accounting for 40%. Brazil was second with 28 percent. India was third with 20%.
In order to meet the needs of textile enterprises to use cotton, China will grant a certain amount of cotton import quota with preferential tariff rate (referred to as cotton import sliding tariff quota) this year. The quantity is 700,000 tons, all for non-state trade quota. Among them, 400,000 tons are limited to processing trade imports; 300,000 tons of unlimited trade.