Interpretation Of Cotton Throwing And Storing Policy In Domestic Cotton Market

Inventory rotation.

To digest the existing national storage time will be longer, and the quality of cotton will drop more. In order to reduce the loss of social resources, the state may take inventory rotation, that is, after throwing and storing, it can replace part of the old cotton, reduce losses, and increase the market supply, and increase the pressure of market supply.

In the process of wheel storage, the dumping and storage will be carried out at the market price. The quantity of storage will be determined according to the quantity of dumping and storage.

The government may be thinking about reducing the impact on the market, but the market is not so fragile, clear expectations, ahead of schedule will allow.

The time will be more sufficient, and the fluctuation of the market will be smaller after the implementation of the dumping and storage. As in the early announcement of Xinjiang's cotton target price, the market will be more stable based on policy guidance.

The purpose of throwing storage.

Such a large inventory is bound to be thrown, but the leaders of the relevant government departments have declared that they will not dump stocks for the purpose of lowering inventories. Only when the market needs cotton will they throw away stores, only to meet market demand, and will not increase market supply pressure, suppress market prices, and stabilize the market and guide the market.

The two elements of dumping are: one is time, the other is price (including the price of additional bonus items sometimes). (two)

Price is more important than time and has a greater impact on the market.

In order to reduce the impact on the market, we should digest inventory, ensure supply and stabilize the market in order to reduce the impact on the market.

The time and price of dumping and storage can only be determined by the market, so as to achieve the desired purpose.

Trigger conditions for throwing and storing.

The leaders of the relevant departments of the state have made clear that the sale of new cotton is more than 70%, the market supply is in short supply and the price is rising too fast.

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The progress of sales is very specific, but the market price is rising too fast, and there is no quantitative estimation. It is simple to suggest that the price will rise too fast. For example, the price index of 3128B will be increased continuously for 10 or 15 working days to a certain extent, such as 8 or 10%.

Dumping reserve reserve price = monitoring price coefficient (such as 0.5-0.8), as a reserve reserve price, so that all parties in the market will have a clear expectation, which can not only detect market demand in time, ensure supply, but also prevent malicious speculation, resulting in excessive volatility of the market.

The relevant government departments should not go to meetings to discuss, waste time and energy, and make decisions quickly, timely, open and pparent.