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    Cotton Prices Collapse When &Nbsp; Whose Tears Are Flying

    2010/10/14 16:36:00 51

    Cotton And Cotton Textile Market

      

    Cotton price

    Madness, cotton farmers are reluctant to sell, some manufacturers store up 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.

    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.


    "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 major cotton producing town in China, faces a rising trend.

    Cotton price

    The cotton grower laughed: after a year of hard work, a good harvest was achieved; hot money went crazy, and poured into Xinjiang Cotton City, hoping to dig a bucket of gold; cotton enterprises were confused, but they did not accept it; textile enterprises were cautious, and the economic recovery was slightly improving, seeing the cost approaching the selling price gradually.

    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 interviews, many ginning plants and

    Textile mill

    The boss is also an old hand in the futures market, and 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 a boss of a cotton mill to cotton field. He answered more than 10 phone calls, including the owner of the textile mill, the owner of the import and export company, and the owner of the dyeing mill. Many people came to Xinjiang to inspect cotton production on site. The same question we asked was whether cotton would dare to accept this year.


    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...

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