Deep Investigation: When Cotton "Crash" &Nbsp, Why Textile Enterprises?

"Cotton is good here. The cost is low."

In the north and south of Tianshan Mountains, many of the cotton traders have been delighted to talk about it.

Akesu, a cotton producing town in China, is facing a high cotton price. Cotton farmers have been laughing and working hard for a year to get a good harvest. Hot money has gone crazy and poured into Xinjiang cotton city. They hope to dig a bucket of gold; cotton enterprises are lost or not; textile enterprises are cautious, and the economic recovery is slightly improving, seeing that the cost is approaching the selling price.

To the downstream end, consumers will have to pay for the increase in cotton prices due to high cost.

When cotton meets capital, the crazy story will be staged.

In the interview, many cotton ginning mills and textile mill owners are also veteran of the futures market. Many people have been fighting for many years in the futures market.

Many bosses, while interviewed, looked at the cotton prices in the US futures market and gave the purchase price of the day.

"Now cotton is boldly bold and has no courage to surrender."

Mr. Pang, the owner of a cotton mill in Zibo, Shandong, has a huge sum of money. She has been in Xinjiang for more than a month, and a pound of cotton has been confiscated.

He wanted to wait until the cotton fell to around 10 yuan per kilogram.

Now I have been playing in Xinjiang for more than 1 months.

The reporter followed the boss of a ginning factory.

In the Ningbo Bailong ginning factory, the reporter saw four or five blooming machines blowing cotton continuously. Lv Houying, a cripper, told reporters that the cotton is very humid this year and the stacks will rot directly.

Farmers basically send cotton that day to cotton ginning plants and fear that cotton prices will plunge.

Due to the low temperature weather, the cotton market in Xinjiang is more than 20 days late this year.

It is unknown whether cotton prices will remain high after October 20th.

The first lesson of economics professors is often to explain that prices are determined by supply and demand.

Obviously, the bad weather caused some gaps in the supply of agricultural products. We must see that there is too much money in the whole economic system, which is the underlying reason for this price increase.

Cotton prices are crazy, cotton farmers are reluctant to sell, some manufacturers are stockpiling goods, and downstream textile mills reduce production.

It seems that Lv Zuoguang, the head of new reclamation farm in Xian Ya county, seems to be back 12 years ago.

In 1998, Lv Zuoguang worked in the local government department, and witnessed the whole process of cotton from frenzy to plunge.

In 1998, it was a bumper harvest year for cotton in Xinjiang, and cotton production in Akesu exceeded 1 million tons, a record high at that time.

Since the Asian financial turmoil in 1997 has just passed, the export of enterprises has been revival. Many enterprises have also scrambled for cotton resources, and cotton prices are also higher than in previous years.

"At that time, the price of the lint was 18 thousand yuan / ton in September, but the textile factory simply couldn't afford it. The stock of cotton was very heavy and there was no manufacturer at all."

In order to deal with the backlog of large quantities of cotton, a cotton sales team was set up to sell cotton throughout the country.

Lv Zuoguang led the construction of 5 sales outlets in Anhui Hefei, Hubei Wuhan, Hebei Dingzhou, Henan Zhengzhou, Shandong Qingdao and so on, and promoted cotton sales. At that time cotton was almost 200 yuan per ton per 2 days. Finally, it was finished in June 1999, but the cotton price had dropped to 7000 yuan per ton, or more than 60%.

The excessive rise of cotton prices is becoming an unbearable burden for cotton producers and textile enterprises in the middle and lower reaches, and it has drawn more contradictions and difficulties in the cotton industry and the upstream and downstream of the cotton textile industry.

The price of cotton that can not be digested and smoothly pmitted will be more like a "castles in the air" with no solid foundation. Once the collapse, cotton growers, cotton enterprises, spinning enterprises and related industries will eventually suffer heavy losses.

Then, whose tears are flying...