On Tuesday, the Senate Banking Committee held a hearing over the topic “The Digitization of Money and Payments.” The link below provides key takeaways and an overview of the hearing.
Category: Uncategorised
Overview of the House Committee of Financial Services Hearing
On Tuesday, the House Committee on Financial Services held a hearing titled: “Oversight of the Treasury Department’s and Federal Reserve’s Pandemic Response.” An overview of the hearing is provided below.
ACSA Engages with Cotton State Senators for Support of Tillis/Warner Letter
ACSA is enaging all of the cotton state Senators’ offices requesting their support for the Tillis/Warner cotton support letter. Click the link below to view ACSA’s letter.
Tillis/Warner Circulate Cotton Support Letter
Senators Tillis and Warner are circulating a cotton support letter to Senate leadership. Please visit the link below to see the letter.
China Announces to Dump 500K MT of Reserved Cotton
National Food and Strategic Reserves Administration and Ministry of Finance jointly announced just now. In order to optimize the structure of reserve cotton, ensure the quality and enhance the regulation and control ability of central government. It’s decided that some reserve cotton will be rotated in 2020. The relevant matters are hereby announced as follows:
Reserve dump:
Time: reserve auction will be carried out on each business day from July 1, 2020 to September 30, 2020.
-Quantity: The total amount is about 500,000 tons, with about 8,000 tons offered on each business day.
- Price. The starting price will be determined dynamically according to the market. It is calculated and determined by domestic cotton spot price indexes and international spot index (cotlook A) according to the weight of 50% respectively, and will be adjusted once a week. During the period of reserve auction, when the domestic market cotton spot price index is lower than 11,500 yuan / ton, auction will be suspended from the next business day; when the domestic market cotton spot price index exceeds 11,500 yuan / ton for three consecutive business days, auction will be restarted on the next business day.
- Platform. Reserve cotton will be offered and bid through CNCE e-trading platform. sold in the national open market.
- Classing. The quality and weight of the reserved cotton will be inspected by China Fiber Inspection Bureau(CFIB).
Calculation Formula of Reserve Dump:
-Weekly starting price – domestic cotton price indexes of last week X 50% + international spot cotton price index X 50%
- Domestic cotton price indexes = (CCI + CN cotton B) ÷ 2
- International cotton price index = cotlook A (usd/ton) × exchange rate × （1+ import cotton tariff 1%）× （1+ VAT 9%）
- (exchange rate = the rate on the third Wednesday of last month)
- CCA (China Cotton Association Q’s quality P&D will be used for auction.
Reserve Buying:
-Related department shall select another time to arrange the reserve buying, according tot he actual reserve selling and the supply/demand situation of the cotton market. The specific details will be announced separately as soon as possible.
China Falls Below Target
As of the end of May 2020, China has only purchased 19% of the $170 billion worth of U.S. goods that would agreed upon in the Phase One Trade Agreement. This means that in order for China to uphold their end of the deal, they will need to purchase approximately $139 billion worth of goods by the end of the year.
Acreage and Stocks Estimates
On Tuesday, USDA will report the annual Acreage report and the seasonal Grain Stocks report. Reuters/Bloomberg have provided their expectations for both reports. They estimate that there will be approximately 13.2 million acres of cotton planted, but the estimate may range from 11.9 to 13.9 million acres.
U.S. House Bill Proposes Infrastructure Spending
The U.S. House of Representatives will likely pass a $1.5 trillion infrastructure bill. The picture below demonstrates how money would be allocated through The Moving Forward Act.
CFTC Opening Meeting
On June 25, the Commodity Futures Trading Commission (CFTC) held an open meeting. The link below provides the key takeaways from the meeting.
Review Classification for Plastic Extraneous Matter
USDA/AMS announced today that beginning July 1, 2020, modifications will be made to the cotton and tobacco policy regarding Review and Rework for classifications originally designated with plastic extraneous matter. Three modifications were made. See link for details.
