Cotton Prices Go Up This Year And They Can'T Stop.

For more than a month, new cotton will be on the market. Reporters visited cotton growers and cotton purchasing and processing enterprises on the 8 day and found that although they were ready to buy new cotton this year, they were not optimistic about the acquisition and price this year.

Grain prices are rising.

Cotton growers benefit less than grain crops, and cotton seed area is the lowest in ten years.

Shen Xiang Fu of Dong Jin Fu Zhai village, Zhengzhai Town, Lingxian County, has only planted a few mu of cotton this year.

"Cotton prices are likely to rise a lot this year," Shen Xiangfu told reporters. Despite this, few people have planted cotton in their villages.

"From seedling to medicine and then picking up, it's too time-consuming and time-consuming," the villagers said. Nevertheless, the income of planting cotton is not much higher than that of grain. "Last year, cotton production was reduced, and more and more people went out to work, so there was not much race this year."

Reporters learned from the Dezhou cotton association that the cotton planting area in our city is only 2 million mu up and down this year, a decrease of more than 10% over the previous year, the lowest in ten years.

It is understood that, by the total domestic cotton production decline, textile enterprises to increase cotton recovery and other factors, 2009

Cotton prices are low this year, and the era of high cotton prices has arrived.

"This year's price is definitely low," said Wang Xinjun, the chief of Huaxing cotton processing plant in Wucheng county.

Wang Xinjun, who has been engaged in cotton processing for more than 20 years, is still surprised by the rise in cotton prices last year.

According to the head of the Dezhou Cotton Association, cotton prices are low, farmers are reluctant to grow and the area is reduced. The decline in the area has pushed up cotton prices, while domestic demand has not decreased.

Accordingly, cotton prices will be running high in the next few years, and the era of low cotton prices has passed, and the era of high cotton prices has arrived.

The official said that there will be a wait and see period in the new cotton market this year. The time for the specific listing will be more than half a month later than in previous years, and will be on the market by the end of September or early October.

As a cotton purchasing and processing enterprise between cotton growers and spinning enterprises, it is not easy to grasp the purchasing price of new cotton, which has greatly reduced the risk of farmers' reluctance to sell. The price of specific scales depends on the spot price of lint at the beginning of September. It is estimated that the seed cotton purchase price will be around 8 yuan / kg, and the minimum price should be no less than 7 yuan / kg. If less than 7 yuan per kilogram, the planting area of cotton will decrease in 2011. If that is the case, it will be unfavourable to cotton enterprises and textile enterprises.

Spinning enterprises

The reporter understands, at present, domestic cotton yarn quotation is still at a high level, but the weak downstream market has already opened the way of cotton yarn price drop.

Since July this year, domestic cotton prices and yarn prices have dropped slightly under the heavy pressure of national dumping and issuance of import quotas.

In the near future, plans for dumping 600 thousand tons of storage have been approved and may be issued at any time according to market conditions.

The industry believes that cotton prices have reached the top, cotton yarn prices are difficult to rise again, spinning enterprises continue for more than half a year will be the end of a good day.

The pressure of rising cotton prices is bound to shift to the downstream textile and garment industries, and the profit margins of textile enterprises are compressed to varying degrees.

With the advent of the high cotton price era, the future of textile enterprises is not easy.

Industry experts believe that the textile industry should promote "eliminating backward, reducing and upgrading".

One is to develop high and multiple components, increase the amount of non cotton fiber and eco-friendly fiber, and reduce the dependence on cotton.