The United States Added Tariffs To Chinese Enterprises To Suspend Purchases Of Agricultural Products, And Cotton Prices Fell To A Lower Level.

Last week (July 29, 2019 -8 2) was the thirteenth week of the central reserve cotton mill in 2019, and China Cotton Reserve Management Co., Ltd. sold 53 thousand and 500 tons of cotton reserves, including 24 thousand and 200 tons of Xinjiang cotton and 29 thousand and 300 tons of real estate cotton.

In the week, the average price of the reserve cotton wheel was 12481 yuan / ton, down 62 yuan / ton compared with the previous week, and the standard grade (3128B) price was 13755 yuan / ton, up 22 yuan / ton compared with the previous week. The average price of Xinjiang cotton was 12649 yuan / ton, 31 yuan / ton less than the previous week, and the price of 3128B was 13507 yuan / ton, compared with the previous week, it dropped by 344 yuan / ton, the average increase price was 608 yuan / ton, compared with the previous week, it dropped 17 yuan / ton; the average price of real estate cotton was 12312 yuan / ton, compared with the previous week, it dropped 82 yuan / ton, and the price of 3128B was 13613 yuan / ton. In the week, the maximum price of reserve cotton was 14210 yuan / ton, and the lowest transaction price was 11450 yuan / ton.

Last Wednesday (July 31st), the twelfth round of trade negotiations between China and the United States ended in Shanghai and indicated that it would continue to hold talks in early September. But on the following day, Trump sent tweet that it would impose 10% tariffs on products imported from China in September 1st. The market was plunged into panic. The price of domestic and foreign cotton fell down to a lower level. The domestic spot and reserve cotton volume and price were all affected, and the enthusiasm of enterprises for auction of cotton reserves had subsided.

Today, according to information from the parties concerned, because the US side announced that it would levy a 10% tariff on 300 billion US dollars in China's exports to the United States, which seriously violated the consensus between the two heads of state of Osaka and China, the Customs Tariff Commission of the State Council of China has temporarily excluded import tariffs on new US agricultural products after August 3rd, and Chinese related enterprises have suspended the purchase of US agricultural products.

At present, the market confidence of the gauze Market has been hit hard. The impact of Sino US trade friction on export orders is beginning to show. The cotton consumption momentum is further weakened, the downstream driving force is insufficient, and the new cotton will be listed in September. The domestic cotton supply pressure is expected or sustained, which will continue to test the domestic enterprises.