Market Dynamics: Tight Supply Of High Quality Cotton In The Mainland

      Because of the high price of seed cotton purchase this year, many ginning plants hesitated to purchase seed cotton. Some even gave up purchasing seed cotton processing lint at a high price after collecting some seed cotton, and directly bought from the futures market to share the cost of high price lint. At present, there is a shortage of high-quality raw materials in the downstream of cotton spinning, and the National Reserve will be sold out of 30000 tons in a day, Some of the cotton with poor quality has been in the flow auction. Even if the national reserve imported American cotton as reserve cotton, the current domestic storage capacity is not enough, so we can only lease other warehouses as spare warehouses. If we calculate the domestic cotton gap, we can see as follows: the import quantity in previous years + the strategic task of national reserve to build more than 3 million tons + the quantity of Xinjiang 30% production reduction + the additional consumption of India and Vietnam capacity transfer. How big is the gap?