New cotton supply will increase gradually

Currently, there is still not much new cotton available in the spot market, but a small number of quotes have emerged. For the 2024/25 season, the basis for hand-picked cotton from South Xinjiang and machine-picked cotton from North Xinjiang, 29mm and 29gpt, is currently at 800yuan/mt and above on ZCE Jan contract, partly at 1,000yuan/mt for cotton from XPCC, ex-Xinjiang. The supply of new cotton may gradually increase by the end of Oct, with some previously sold cotton also scheduled for delivery at that time. Once the supply of new cotton increases, the short-term issue of insufficient high-quality cotton supply in the market may be alleviated, and the overall market supply is expected to be relatively ample in the short term.