November 29, 2012

China National Cotton Reserves Corporation (CNCRC) has acquired about 3.31 million tonnes of cotton by November 27.

The volume of purchase includes 473,800 tonnes of cotton ordered and purchased by backbone enterprises and about 2.83 million tonnes purchased under nominal quotation.

It is disclosed that 1.01 million out of the 2.83 million tonnes of cotton mentioned before was purchased from inland provinces and the remaining 1.82 million tonnes from Xinjiang Uyghur Autonomous Region. The 1.82 million tonnes exceeds the 2011 entire procurement volume of roughly 1.71 million tonnes in Xinjiang.

The company has purchased an actual amount of 47,500 tonnes of cotton for reserve under nominal quotation on November 27, including 23,490 tonnes from the inland provinces and 24,000 tonnes from Xinjiang, versus the planned volume of 93,680 tonnes and 24,000 tonnes respectively.

Because the seeding area has decreased, China's actual yields of cotton in 2012 is reckoned to decrease 300,000 tonnes or by 4.2% to about 6.9 million tonnes from 2011, according to an insider of the National Development and Reform Commission (NDRC).