Zhengzhou cotton futures market has been volatile after the Mid-Autumn Festival holiday

On the one hand, investors held certain positive anticipation towards the relations between China and the United States again after Meng Wanzhou returned back to China on the night of Sep 25. Macro sentiment was favorable to the cotton market, shoring up both ICE and ZCE cotton futures. On the other hand, seed cotton prices in Xinjiang also ticked up after the holiday. The new cotton costs have been close to 21,200-22,000yuan/mt gross weight on theory on Sep 27. Currently, small quantity of machine-picked seed cotton begins to arrive in North Xinjiang, and prices are high. In Manas, machine-picked seed cotton prices are at 9-9.2yuan/kg with ginning yield of 40-41%, and cotton seed prices at 3.2yuan/kg, with the cotton costs at 21,200-21,500yuan/mt gross weight on theory. On concern about high prices, some ginners plan to delay the procurement.