Cotton Prices Continue To Climb In Hebei, Hitting A Ten Year High

With the price of many large agricultural products rising, "idle capital" has been developed for several years, and the price is stable and potential is enough.

Figures: "70 days on the market, up 70%".

Beginning in March this year, domestic cotton production and international market cotton prices rose, domestic cotton prices continued to rise, especially after the middle of September, cotton reserves bidding, futures matching prices soaring sharply, driving the purchase price of new cotton rose sharply.

The reporter learned from the China Cotton outlook report that cotton seed purchase price has reached a record high this year since cotton scale started in September, and then continued to rise.

The latest data show that in October 15th, the reference price of China's cotton purchase was 5.71 yuan / Jin, up 1.52 yuan / Jin compared with 4.191 yuan / Jin in September 15th, and the acquisition cost rose from 18224 yuan / ton to 24877 yuan / ton, up 6653 yuan / ton, more than 1000 yuan over the same period.

The price of lint rose rapidly in the month, and the price index was 24177 yuan / ton, rising to 5579 yuan / ton in September 15th.

"Cotton market 70 days, from the beginning of 18000 yuan, 11 this month has broken through 31000 yuan, cotton purchase price has risen 70%, facing the downturn of the cotton market, it can be said to be" sky price "cotton.

Shi Jianwei, vice president of China Cotton Association, said.

Reason: domestic and international spot futures are speculation in turn.

Reduce total supply of cotton

"Hebei will probably reduce production by more than 20, and Shandong will reduce output by more than ten percent. The overall situation is to reduce production in the north and increase production in the south."

The construction industry committee said.

In 2009, the low cotton price and low income situation in the domestic market affected the enthusiasm of cotton growers and led to a decline in cotton planting area this year.

Meanwhile, factors such as delayed planting and frequent occurrence of disastrous weather have also affected cotton yield and quality.

In addition, because of the general increase in grain prices this year, cotton growers have a higher expectation of cotton prices.

"On TV, we interviewed a Shandong cotton grower. They said that 7 yuan per kilogram would not be sold."

Lei Xiangju, general manager of China cotton storage management company, said.

Cotton production and demand gap widening

With the revival of domestic and foreign economies, the domestic and foreign textile market this year has seen a good momentum of development.

The rapid development of domestic textile industry has led to an increase in domestic demand for cotton.

According to the National Bureau of statistics, retail sales of clothing shoes and hats and needle textiles increased by 24% over the same period in 1-9.

Textile and clothing exports also showed a continuous upward trend.

According to statistics from the General Administration of customs, in the 1-8 months of this year, China's clothing exports amounted to $80 billion 290 million, an increase of 19%, and textile yarn, fabrics and products exported 49 billion 510 million US dollars, an increase of 32.3%.

Since the beginning of this year, the price of cotton has entered an upward trend in the international market, showing a continuous upward trend.

According to statistics, on October 25-29, cotton futures in the New York Mercantile Exchange averaged 2527 US dollars / ton, up 13.6% over the 10-14 day average price in September, 54.5% higher than the 4-8 average price in January.

The sharp rise in cotton prices in the international market has had a strong pulling effect on cotton prices in the domestic futures and spot markets.

The four is speculative capital speculation.

RMB appreciation expectations and news reports "La Nina" phenomenon may bring hurricanes, rainstorms and severe cold effects this winter. Hot money has entered a large number of cotton futures.