Cotton Association Of Hubei Province: Cotton Prices Play Bungee &Nbsp; Cotton Enterprises Are Puzzled.

Cotton business is one of the bewilderment: first, review a set of price data. In November 9th, cotton price reached its peak. Futures 1101 contract reached 33800 yuan / ton. The cotton warning system information point was reported to Hubei Province on the same day, the 4 level seed cotton purchase price was 6.5-6.7 yuan / Jin; in November 12th, the futures contract 1101 yuan was 31750 yuan / ton, and the information point was reported to the whole province on that day. The 4 main seed cotton purchase price was 6.7-6.9 yuan / Jin, and even the price of 7 yuan / Jin was higher. From the above we can see that the cotton purchase price adjustment in Hubei is lagging behind the futures price. When the futures price falls, the purchase price has not fallen but has risen, which has become the main reason for the high purchase cost.

The highest acquisition cost in the whole province was close to 32000 yuan / ton. Even through the early and current acquisition of low price, the acquisition cost of cotton in Hubei province was mostly 25000-26000 yuan / ton, and now the textile factory quotation is only about 25000 yuan / ton, and the quantity of purchase is not large, and the quantity of procurement is not big, the urgent need for procurement is, and the stock is mainly waiting and watching.

Therefore, many cotton enterprises are in a dilemma of selling and not selling, especially the 200 type enterprises are more prominent. If sales are realized, the price will hang upside down and they will lose money. If they do not sell, the enterprises will face greater difficulties. First, as the end of the year draws near, the pressure on banks to repay and cash their employees and debts will increase day by day. Two, they will continue to store, capital interest and warehousing costs will continue to increase, the cost will gradually increase and the risk will increase further.

Cotton business puzzled two: price decline, or no harvest? Seed cotton purchase price has entered a downward channel since November 15th, from 6.8 yuan / jin to the current 5 yuan / Jin, less than a month's time, dropped 1.6 yuan / Jin, in December 1st, Hubei province appeared 5 yuan / kg below the purchase price, and the quality is good, the water is low.

In the face of the current good situation of the rare acquisition market, cotton enterprises are entangled again, so do they buy or do not buy? For example, the continuation of the purchase, first of all, there is a large amount of capital support, and now many cotton enterprises are backlog of cotton stocks and the loans from the Agricultural Development Bank are basically over, so there is no excess capital turnover to deal with the takeover. If it is not purchased, it will no doubt miss the current purchase of the low price segment. According to the current seed cotton purchase price, the cost of lint conversion will be only about 23000 yuan / ton, and the profit from buying and selling is also considerable.

Drop, or even loss, should be sold, and it is planned to withdraw funds for re acquisition. However, there are differences between the 400 enterprises in the acquisition, and some enterprises in Jingmen, Xiangfan and other places of Hubei province have stopped buying, even if they have not stopped publicly, but the quality and price requirements are very strict, and the daily purchasing amount is not large. Some of the enterprises with strong capital continue to buy the market, the average purchasing cost has declined compared with the previous stage; some enterprises that have suspended the purchase have re entered the market, and a purchasing processing enterprise in Huanggang has stopped buying the market when the market price is 5.5 yuan / Jin, and now the market is being bought. The average cost of the acquisition is controlled at 22000-23000 yuan / ton. The enterprise has no sales, and the price is expected to rebound to 28000 yuan / ton. According to the information points of the cotton warning system, some 200 type enterprises are eager to get rid of inventory and sell quotations.

Cotton enterprises are puzzled three: after the trend is unknown, how to grasp the operation? Seed cotton purchase prices continue to fall, all links in the industrial chain are wait-and-see.

Information point feedback, nearly a week cotton city is almost dormant, and the market in early November was ice and fire two days.

The late trend has become the focus of attention of many market participants. Cotton price roller coaster has made cotton enterprises in a confused business, especially cotton storage. The enterprises with high cost are hoping that there will be wave prices after the Spring Festival, which will drive enterprises out of the trough. Once the price can not be returned to the ideal price as they wish, a large number of cotton enterprises will be closed and eliminated.

The perception of cotton enterprises: to guard against risks and to operate steadily is the foundation of enterprises. After experiencing the sharp rise and fall of cotton prices and feeling the great loss of business, many managers of cotton enterprises have deep feelings. They concluded that enterprises should not bet on the market, keep the market and lose their quality. They should take risk prevention as the first step in the rapid development of enterprises. At any time, they must stick to integrity and maintain a good credit system.