On March 1, 2012, the preliminary cotton reserve and storage plan was formally announced. The closing price was RMB 20,400/ton, which was 600 yuan/ton higher than that in 2011, and the increase rate was 3%. The confidence of related traders of cotton by-products was boosted. Willingness to increase, it is expected that the recent domestic cotton by-products market will remain stable.

Domestic cottonseed purchase prices rose steadily. At present, the acquisition of seed cotton is nearing completion, the operating rate of cotton plants is generally not high, the output of cottonseeds is limited, the willingness of manufacturers to increase prices gradually increases, and the price of cottonseeds is promoted to rise modestly.

The demand for domestic cotton oil market is not strong and the market conditions are stable. At present, the domestic oil and fat market is in an off-season demand, and the enthusiasm of traders entering the market is not high. Coupled with the increase in the operating rate of oil plants, the market supply has increased, and the market for cotton oil has been suppressed. However, the current price gap between Grade 3 cotton oil and Grade 1 soyoil in the Northern Production Area is between RMB 1550-1650/ton, and the price of 24 degrees palm oil is upside down from RMB 100-200/ton. The price advantage of cotton oil is obvious, coupled with cost factor support. The resilience of cotton oil prices has increased and it is expected that the market will remain stable in the near future.

The domestic market for cottonseed meal was light, and the market was stable. The strong export demand of US soybeans pushed soybean prices higher, and domestic soybean meal prices rose. Currently, the spread of cottonseed meal in the northern producing areas and the 43% protein soybean meal in the coastal areas is in the range of 1350-1400 yuan per ton. The price advantage of cottonseed meal is obvious, and it is relatively defensive in the short term.

The domestic cotton linter market remained stable. The increase in storage and storage prices in the new year will bring support to the cotton linters market. Coupled with the current low output of cotton linters, the willingness of manufacturers to increase prices will increase, and cotton linters will be firm.