Seven Ministries And Commissions Urgently Put Together To Curb Cotton Prices Soaring

Just two days ago, the relevant state departments decided to put 400 thousand tons of national cotton reserves on the basis of 600 thousand tons of national cotton reserves in advance, so as to stabilize cotton prices.

The current trend of cotton price rising began in 2009, to August this year.

According to the statistics of China Cotton Association, the paction price of reserve cotton was relatively stable at the beginning of the dumping, but it rose again at the end of August.

Entering the September, the paction price has risen from 17000 yuan / ton at the beginning of dumping to 20000 yuan / ton.

Yesterday's Chinese cotton price index soared 7.26% to 21255 yuan / ton.

From the reasons for the rise, although many times before

According to reports, 20% of China's cotton supply came from the United States. Since 2008, the reduction of cotton production in the United States has resulted in a domestic supply gap of about 1 million 500 thousand tons.

In 2009, domestic cotton production reduced the gap.

Since this year, the continuous rainy weather has caused the market's lower expectations for cotton production.

Xu Liang believes that compared with the previous prices of small agricultural products, in the paction of cotton such commodities, prices will not be dominated by social capital speculation, but in the futures market, capital has played a role in boosting prices.

This is also an important reason for the excessive price increase.

Last week, only two trading days, cotton futures rose 8.89%, speculation in the market rose.

Yesterday, Zhengzhou cotton futures opened in early trading, followed by wide shocks. The main 1105 contract rose 380 yuan / ton compared with the previous trading day, or 1.79%, trading volume and positions increased significantly.

At yesterday's meeting, the relevant units admitted that China's cotton production is expected to decrease slightly in 2010, and the demand for cotton will continue to grow.

For the future cotton supply and demand situation, Zhang Xiaoqiang, deputy director of the national development and Reform Commission, said that if we can do a good job in reserve regulation and make full use of international market resources, we can achieve a basic balance of total cotton.

But this position is clearly not accepted by the market.

According to the East Asian Securities survey, Shandong cotton farmers have been reluctant to sell. The purchase price of 5 yuan is very difficult to receive cotton, and the price in previous years was 3.6-3.8 yuan.

"The listing of new cotton will undoubtedly ease the contradiction between supply and demand, but the specific level is hard to be optimistic in the current weather conditions."

One industry insider said.

In his view, in the face of the market gap of about 3 million -400 tons, the domestic reserve cotton industry is very difficult to rescue.

Xu Liang also believes that imported cotton is not an effective solution at present, and the price of cotton in the United States has exceeded domestic prices. Unless the state is willing to buy high and sell low, it will not stop prices rising.

Xu Liang introduced that in the series of control measures, it is feasible to ensure cotton picking and pporting channels.

At present, 40% of China's cotton supply structure comes from Xinjiang. However, due to the lack of labor force in Xinjiang this year, cotton picking time may be delayed.

The impact of soaring cotton prices on downstream markets and stock markets has emerged.

Some textile enterprises said they could not afford the current high cotton prices and began to suspend production.

Reflected in the two level market, yesterday, the trend of cotton and chemical fiber stocks and cotton textile stocks were significantly different.

Cotton shares of new race, new agricultural development to stop trading; chemical fiber shares Shandong Hailong, Huafeng spandex, Xinxiang chemical fiber and other gains rose by more than 4%.

And cotton textile and textile machinery stocks are lagging behind, such as Luo Lai home textiles, Meng Jie home textiles, in almost all the red "gift" market, reluctantly guaranteed "red".

"Soaring cotton prices, for textile and chemical fiber listed companies, can be said that some people are happy and sad."

Qin Gang, an analyst with Galaxy Securities, said that the cotton growers and stockpiling merchants will be greatly improved, and the prices of chemical fiber and polyester will also rise sharply.

However, for cotton spinning enterprises, they will obviously weaken their profitability and the prospect is worrying.