Xinjiang Cotton Was Trapped In The "Depression" Policy Two Times To Save Hands.

As the largest cotton producing area in China, Xinjiang cotton's every move is highly concerned.

In the short span of two months after the June export subsidy, the state once again introduced the round store policy to speed up the sale of Xinjiang cotton.

In the second half of 2007, domestic cotton market continued unsalable and price drop made Xinjiang cotton sales difficult again become the focus of the industry.

At the end of June, when the news came out of the backlog of nearly 100 million tons of cotton stocks in Xinjiang, the regional government, cotton enterprises and related lending banks could no longer sit still.

In June 23rd, the Ministry of Finance issued a notice on the Interim Measures for the management of the cost of subsidized cotton removal. It stipulates that from 2007 to 2010, the central government subsidized cotton production and pportation through the railway to the mainland for sale in Xinjiang, with a subsidy of 400 yuan per ton, regardless of grade and length.

At the same time, in order to speed up the allocation of cotton in Xinjiang's cotton growing area, the Ministry of Railways decided that from July 10th to the end of August, the wagon of the Urumqi Railway Bureau will be increased to 270, and the expected shipment volume will reach 600 thousand tons.

Intuitively, the introduction of these measures will help promote the sales of Xinjiang cotton and speed up the progress of cotton enterprises' withdrawal of funds and greatly alleviate the pressure on Xinjiang cotton inventory.

But the development of the situation is often unexpected, especially in this year's complex economic environment and uncertain factors.

In such a short period of time, with more than 10 thousand tons of Xinjiang cotton entering the mainland every day, Xinjiang cotton arrived at the main warehouse area. The market seems to be flooded with Xinjiang cotton everywhere at night, and the pressure on the market with confidence and fragility can be imagined.

In the more than a month after the introduction of the policy of subsidized relocation of the Xinjiang cotton store, under the interaction between the pessimistic anticipation of the production and marketing situation of the textile and garment industry and the decline in the prices of agricultural products in the international market, the domestic cotton sales progress is still slow, and the market prices are dropping step by step. The impact of Xinjiang cotton coming to the market is gradually emerging.

At the critical moment, who can pull the new cotton?

On the evening of August 19, 2008, China's reserve cotton management company and the national cotton trading market jointly issued the notice on the acquisition and storage of Xinjiang cotton in 2007, the first batch of 150 thousand tons of temporary storage and storage of 2007 tons of zigzag cotton in Xinjiang.

The highest price of the storage and storage is the standard level (328 level), 13400 yuan per ton (Xinjiang library point) and 13600 yuan (referring to the inland reservoir point), and the purchase and storage price of other grades of cotton is calculated according to the grade difference of 3% and the length difference of 1%.

In order to support the reform of cotton quality inspection system, Xinjiang cotton, which is certified by notarization, is settled by net weight. The net settlement price is added to 400 yuan per ton on the basis of corresponding cotton price.

The author noted that the announcement content of Xinjiang cotton which was collected and stored in 2006 was obviously different from that in the year of the year. A notable feature of the current round of acquisition and storage of Xinjiang cotton is that the scope of storage and purchase is limited to the saw toothed fine cotton which is produced in Xinjiang in 2007 and is certified by public surveyor.

It is understood that as of now, the region has been in accordance with the requirements of the cotton quality inspection system reform plan for cotton processing equipment renovation and upgrading of cotton processing enterprises reached 564, of which 421 companies declared the notarization of instrumentation, accounting for 720 of the country's notarization testing enterprises 58.5%.

In 2007, the total number of cotton tested in the district was 5 million 610 thousand and 1 million 264 thousand tons, although only 43.58% of the total output in Xinjiang, but accounted for 76.4% of the total number of public inspection in the country.

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The second characteristic is that the current round of purchasing and storage work has better combined with the current market situation, which has played a role in the acquisition and storage of cotton policy, and has also taken into account the interests of cotton enterprises.

In terms of price, the highest price for the storage and storage of the inland Treasury points is the standard level (328 level) 13600 yuan / ton, and the Xinjiang Treasury point is 13400 yuan / ton.

At present, the price of grade 329 cotton produced in the mainland is basically 13500 yuan / ton in Xinjiang.

At the same time, this round of collection and storage has also made corresponding improvements to the way of settlement. Xinjiang cotton, which has been certified by notarization, has been settled by net weight. The net settlement price is added to 400 yuan per ton on the basis of corresponding cotton price.

This improvement may be due to the fact that cotton is stored in the territory for a long time and the natural loss factor of cotton caused by the local dry climate can be properly compensated. This is also a common concern of Xinjiang cotton storage and storage enterprises. It is hoped that this controversial issue can be effectively solved in the process of storage and storage.

The announcement of the purchase and storage announcement is only about 10 days from the start of the new cotton store. Although the first batch of storage and storage is tentatively scheduled for 150 thousand tons, the volume is not as high as expected by the market, but I believe this is only the first step.

It is particularly important to note that when the cost of cotton growing is rising and farmers' cotton yields are expected to decline, the introduction of this policy will be particularly important for restraining the falling cotton prices, boosting the confidence of cotton enterprises and cotton farmers, stabilizing the current domestic cotton market, ensuring the smooth start of the acquisition of new cotton, and stabilizing the cotton production next year.

We expect that this policy will bring positive changes to the market and meet the arrival of the new cotton year with confidence.