According to the requirement of No. 26 document released by National Development and Reform Commission and Ministry of Finance in 2016, China National Cotton Reserves Corporation (CNCRC) formulates the details about the 2016/17 state reserves sales.
The state reserves sales will commence from March 6, and plan to end on August 31, 2017. The cotton sold is reserved from 2011/12 to 2013/14 season. The quantity and sales sequence will be arranged according to actual situation.
The base selling price is calculated like last year, to be set at the average price of international cotton and domestic cotton, which will be adjusted every week.
Base selling price (cotton type 3128B)=average price of prior week's domestic cotton prices*50%+average price of prior week's international cotton price*50%.
1. Domestic cotton price=(China Cotton Index+CNcotton)/2;
2. International cotton price=Cotlook A Index (converted to USD per ton)*exchange rate*(1+1%import duty)*(1+13%VAT)