Cotton Purchase In Hefei Is Caught In An Ugly Dilemma

Since last year, "garlic you ruthless", "beans you play", "Ginger your army" after the golden autumn, market Rubik's cube once again extended its tentacles to the acquisition market of new cotton. The "frenzied" cotton price has made the purchase price of seed cotton skyrocketing this year, and farmers are reluctant to sell. The cotton purchase in recent years is no longer in Hefei. Reporters learned from the city's supply and marketing cooperatives that the qualified cotton purchasing enterprises are now left behind in the cold market, Hefei area. cotton The acquisition, like most parts of the country, has been caught in an embarrassing "dilemma".

High price or moisture cotton?

"Cotton is not only high in price this year, but also high in moisture content." A cotton purchasing enterprise professional in Hefei told reporters that because of the delayed pickup of cotton this year, the weather turned cool and the dew was heavy when picking. This year, cotton water in Hefei area is high, and it is generally around 15%. "According to the state regulations, the water content of qualified cotton should be controlled below 10%, but under the condition of resource shortage this year, many small buyout enterprises have relaxed the water standard requirements, and within 15% cotton is regarded as a normal standard, and more than 20% of the moisture content of cotton is not damaged." It is reported that very few acquisition companies even sprinkle hot water directly on the new cotton field, confusing man with water and natural disasters. Under such circumstances, some large qualified enterprises have no choice but to "follow the market" and adjust the national standard of 10% to less than 13%.

A large number of hot money into fertilizer Cotton grower Reluctant to sell heavy heart

"This year's cotton purchase is difficult, in addition to weather induced reduction in production, resulting in high prices, there is another important reason is the involvement of a large number of hot money speculation." City cotton trade association responsible person said that this year Hefei area slightly higher than last year's planting area, but affected by the weather, not only the maturity of cotton has been postponed, and the output is expected to yield 20%, quality grade has decreased significantly compared with previous years, the general reduction of 1.5. "Although the grade has been lowered, the price is 50% higher than that of last year." It is understood that at present, the purchase price of cotton in Hefei has reached 10.9 yuan / kg, up nearly 50% over the same period last year.

A large cotton enterprise in Hefei revealed that "a large number of businessmen in Shandong have found a large number of new cotton in Hefei. These people are generous, and the price is higher than the market price of 0.2 yuan / kg purchase, not quality, as long as they are cotton. In addition, some cotton traders peddled directly to the field to participate in the purchase and bid up prices. The cotton purchasing market is more chaotic now, and the cotton farmers are reluctant to sell more.

Cotton prices rise, such as Hong cotton enterprises two worries

"We are worried about acquisitions on the one hand, and on the one hand we are worried about planting next year." The shortage of resources, the speculation of idle funds and the decline of quality make the purchase market full of uncertainty. In the face of the rare cotton purchase this year, everyone in Hefei's cotton enterprises has expressed concern about the future market. They believe that the prospect is unclear, the price is rising and the risk of operation is increasing. "No matter the price or the acquisition of super cotton, the risk of cotton business has increased this year." It is reported that in order to control the risk of funds, the Agricultural Development Bank has implemented the "double line" policy of the loan line and the price warning line, and the current market price of seed cotton has already been "upside down" more than 2 yuan.

"In the face of the current cotton market, the price of reserve and futures continues to rise, supporting and contributing to the rise of the purchasing price. At present, the price of the rising rainbow is the true expression of the relationship between supply and demand, or the buoyancy of the market speculation, which is worth pondering and exploring by the cotton enterprises." It will also pose a great threat to the long-term interests of cotton growers. Because of the high cotton prices this year, most cotton farmers plan to expand cotton planting area in the next year. Some even decide to expand more than two times. Cotton production is cyclical, and there will be a trough after the peak. If output increases substantially next year, prices will fall, and cotton farmers themselves will be harmed.