Seed cotton prices rise first and then decline following the trend of ZCE cotton

Before the National Day holiday, the price of seed cotton rose steadily, primarily based on the increase of ZCE cotton. Ginning factories in Xinjiang were cautious to purchase overall, aiming to hedge in real-time. Nevertheless, during the National Day period, ZCE cotton was not open for trading, yet the market sentiment for the macroeconomic outlook after the holiday remained positive. This resulted in the purchasing price of seed cotton continuing to rise steadily during the holiday. As of Oct 7, the main purchasing price for machine-picked seed cotton with ginning yield of 40% was around 6.4-6.5yuan/kg, highly at around 6.6-6.7yuan/kg. In contrast, prices were lowly at around 6.2-6.3yuan/kg in South Xinjiang. This led to a situation on Oct 8, when ZCE cotton opened higher but then trended downward, with only a small quantity of newly harvested cotton from South Xinjiang available for hedging, while the higher purchasing prices for North Xinjiang cotton showed a slight backwardation relative to the market. After ZCE cotton dropped, the price of Xinjiang seed cotton fell in line with ZCE cotton over the next three working days. As of now, the lower purchasing prices for machine-picked seed cotton with ginning yield of 40% were around 5.9-6.1yuan/kg (South Xinjiang), although the prices for available purchases still mostly remained at 6.2-6.3yuan/kg and above, with some still maintaining higher purchasing prices of 6.4-6.45yuan/kg.