Cotton Prices Took A "Roller Coaster" In Just A Half Month.

Cotton prices that just surged began to drop sharply in the middle of last month and fell by 30% in the 3 week. Now, the scrambled cotton capital has been sold and sighed heavily, but textile companies still dare not accept more raw materials. Cotton farmers worry that cotton prices will fall further.

Hu Yazhong, director of the Jiangsu Office of the central storage cotton, told reporters that cotton prices did drop sharply. The futures market dropped from the highest 33 thousand and 800 yuan / ton to the current 26 thousand yuan / ton, and the purchase price of Jiangsu enterprises to cotton growers in this province dropped from the highest one Jin 6.3 yuan to 5 yuan. The main reason for the sudden fall in cotton prices is the national macroeconomic regulation and control efforts. First, tighten monetary control to control the acquisition of cotton loans; two, raise the spanaction fees of the stock exchange, cancel the preferential policies to reduce spanaction charges by half of the previous day, and three, increase the supply of cotton to the state.

A lot of hot money want to take advantage of the cotton price rise in the previous stage and get a lot of cotton hoarding, but no one has ever thought that cotton prices have been "roller coaster" in a short half month. The Huang surname brothers of Huanghu village in Juan Town, Jiangyin, recently had a hard time saying that they had gone to Xinjiang to collect more than 500 tons of raw cotton in the early November. Now even if they lose money, no one is willing to take over. The original plan is to earn a profit of 2.3 million, and now it has lost at least 12 million.

Huangshi is the largest distributing center of South of Jiangsu's spinning and weaving and sizing. At peak time, there are nearly 100 tons of white sizing, blue sizing and spinning every day. Xu Zhihuan, a villager, told reporters that he had not seen such a sharp rise and fall for more than 20 years. The purchase price of cotton wool was up to 15 thousand yuan per ton before half month ago, the highest selling price was 17 thousand yuan, and the purchase price of chemical fiber selvage also rose to 15 thousand yuan per ton, but now it has dropped to 10 thousand yuan. He recently had to sell a lot of chemical fiber selvage at a price of 8000 yuan.

In response to hot money, a cotton industry insider told reporters: "the highest level of speculation has reached over 30 thousand yuan. Hot money has earned a lot of money, so it sold out. From November 8th to 10, the country issued 7 gold medals, warning investors to invest cautiously, and the departments concerned also talked with some large futures traders to help them stabilize cotton prices.

Changzhou Sheng Peng textile company manager told reporters that even if the price cut, they dare not take more raw materials, each time only 5 tons of 10 tons. "It is estimated that next year will not return to the lowest level of last year. Cotton is cheap to hurt farmers. Cotton is expensive and hurt businesses. We hope to have a stable cotton price." Huaian Huaxia towel company sales manager Wang also said that cotton prices rose and fell this year, and the company went along with it. Now it is afraid to leave a little cotton inventory, afraid of losses.

"Cotton roller coaster, the same price, so that enterprises do not know how to deal with." Dafeng, a cotton industry company official said, the most troublesome is cotton harvest, because farmers pick up and sell, do not dry sun, they receive high cotton moisture, 100 catties of seed cotton enterprises to pay 10 yuan. Although cotton prices fall, but cotton clothing prices remain high. A clothing store in Huaxin mall in Xinjiekou has a high price of cotton clothes, which is basically 100 to 200 yuan more than last year. The boss told reporters that he saw the decline of cotton prices from the Internet, but the purchase price of the recent manufacturers from Guangzhou has not changed, so he will not reduce the price. A person in charge of Public Relations Department of Jiangsu Feida foreign trade company said that the raw materials of many garment manufacturers were purchased during the cotton price rising period. Therefore, the price of winter clothing will not drop in the short term.

The cotton price, which has not been moving for many years, has finally been raised this year. It has just given farmers a confidence to grow cotton and become rich. But in a short span of half a month, it suddenly plunged into a "diving" and worried the farmers. Cheng Aiming, head of villager of Dafeng Xinfeng village, said that the purchase price of cotton rose to 6.7 yuan per catty last month, but since the state regulation policy came out, it has dropped back to 4.8 yuan. "After that, the price can not be less than 5 yuan, otherwise there will be no race." {page_break}

"Cotton is not planted on the ground, but on the palm of the heavens." According to the investigation of Dafeng cotton growers, the cost of cotton per mu is 1200 yuan this year, and the profit of pure cotton planting is 2200 yuan, far less than that of some other agricultural and sideline products. In Dafeng, one mu of garlic has more than 8000 yuan of income, and more than 6000 yuan of leek is planted in one mu of shed, and the best managed spring maize can be sold for 1400 yuan.

In the previous stage, the cotton sales in our province had exceeded 70%. Now farmers are reluctant to sell cotton at the new price, and some large stockpiling owners and brokers now feel very much at a loss. Sheyang broker Zhang Chengwu said that since the autumn harvest, he has collected 300 thousand jin of seed cotton, the purchase price is 5.7 yuan per catty, half of the cotton cost is half paid, and now the cotton price drop is really worrying.

Provincial Cotton Association said that farmers hope that the policy will protect cotton production more, and textile enterprises will not dare to take risks. Cotton farmers and enterprises all hope that cotton prices will be stable. "In 2003, cotton market set off a price surge, the highest purchase price per catty reached 5 yuan, and small and medium-sized cotton enterprises were financing everywhere. They rushed to rush to buy, but after 3 months, cotton prices fell sharply, and a large number of cotton enterprises suffered heavy losses. Many cotton enterprises that had been closed down in that year have not yet recovered, and this training is very profound. At present, the stock of cotton has dropped to its lowest level in 15 years, and we hope that the state will further encourage cotton growers to grow cotton.