Domestic Cotton Prices Decline, The State Will Purchase Some New Cotton In The Near Future

Recently, in order to protect the interests of cotton farmers, the national development and Reform Commission and other relevant departments will collect and store some Xinjiang cotton Tuo market in the near future.

In 2008, the working cotton teleconference pointed out that the relevant departments have agreed that after the new cotton has been listed in large quantities, such as excessive cotton prices, it is necessary to timely purchase and store part of the cotton in the market, so that the purchase price of the new cotton will remain at a relatively reasonable level.

Since the beginning of 2008, the price of domestic cotton purchase and sale has continued to decline due to the sharp fall in international market prices and the difficulties in the operation of textile enterprises.

According to the China Cotton Association monitoring, the average price of seed cotton purchase in mid October was 5.54 yuan / kg in the mainland, and 5.12 yuan per kilogram in Xinjiang, which was 0.4 yuan / kg lower than the beginning of the year.

China's cotton price index (CC Index328) dropped from nearly 13464 yuan per ton in September 1st to 12512 yuan per ton in October 15th.

As prices continue to decline, cotton processing enterprises are more cautious in entering the market, and the rising cost of cotton has led to higher cotton farmers' expectations.

In mid October of last year, the peak of purchase has already entered. But this year, the seed cotton purchase market is very cold, and the progress is obviously slower than last year. If it goes on this way, it will seriously damage the interests of cotton growers, affect the enthusiasm of cotton planting next year, and will also be harmful to the stability of China's cotton market.

To this end, the national development and Reform Commission, the Ministry of Finance and the Agricultural Development Bank of China decided to collect and store some cotton in Xinjiang recently.

The purchase and storage will be carried out through the open auction in the national cotton trading market. The price of storage and storage is tentatively set as the highest to the warehouse (Xinjiang library point), the price is 12600 yuan / ton, and the number of storage and storage is tentatively fixed 220 thousand tons.