Cotton Purchase And Storage Start &Nbsp; Cotton Price Is Difficult To Continue Strong.

Recently, the eight ministries and commissions of the national development and Reform Commission jointly issued the 2011 cotton temporary purchase and storage plan, and decided to implement the cotton temporary storage and storage system from 2011. The temporary storage price is 19800 yuan per ton of standard grade lint to the warehouse.

This is the first time that cotton storage system has been established in China.

This means that cotton is beginning to enjoy the same protection as food crops.

The real meaning of the policy is to restrain the rise and fall of the cotton planting area, so as to form a reasonable balance with the grain sowing.

"19800" trigger pricing

The implementation time of the plan is from September 1, 2011 to March 31, 2012, and the price of temporary storage and purchase is 19800 yuan per ton of standard grade lint to the warehouse.

The main cotton producing areas are Tianjin, Hebei, Shanxi, Jiangsu, Anhui, Jiangxi, Shandong, Henan, Hubei, Hunan, Hunan, Hunan, and 13 provinces (districts and cities).

The plan shows that once the standard grade lint price is lower than 19800 yuan / ton for 5 working days in a row, it will start policy purchasing and storage.

The national development and Reform Commission pointed out that the establishment of the temporary storage system and the timely release of the plan are conducive to protecting cotton farmers' enthusiasm for growing cotton and stabilizing cotton production this year.

The introduction of the lowest purchase price has made the cotton farmers have a steady income expectation and has a certain effect on stabilizing the planting area of cotton.

Ma Wenfeng, an analyst with Orient agricultural consulting company, told the Nanfang Daily reporter.

"If we consider the cost and income combination, the price of 19800 yuan / ton is a bit low. According to the calculation before the Spring Festival, we should set it at about 22000 yuan."

Ma Wenfeng thinks.

According to the calculation, 19800 yuan / ton for the new year.

Or to balance grain and cotton land disputes.

Cotton prices rose all the way last year. The spot price of standard cotton has risen from 13 thousand yuan per ton in 2009 to 30 thousand yuan per ton.

The industry has forecast the increase of cotton planting area this year, but the average increase is only around 5%.

China Cotton Association's cotton planting intentions survey in March showed that the cotton planting area increased in most parts of the country due to the high level of cotton purchase price. It is estimated that the total area of cotton planting in China will grow by 80 million 960 thousand mu in 2011 and 5.1% in the same caliber, which is lower than that of the previous 84 million 550 thousand mu.

At the same time, the soaring cotton prices also boosted the planting enthusiasm of the main producing countries.

According to reports, in 2011, the US cotton planting area increased by nearly 15%, and India was also increasing its planting area.

The sharp increase in planting area is bound to have an impact on the future price trend.

Judging from the market rule of agricultural products, due to the influence of climate and other factors, there is a production cycle at the same time, and the price fluctuation is larger.

"The phenomenon of" price rise for one year or one year is very common ", Ma Wenfeng pointed out. A signal given by 19800 yuan / ton is that because of the increase of the global planting area, the cotton price is difficult to get out of the strong trend of last year, and the possibility of going down will be greater. This has some early warning for cotton growers.

In Ma Wenfeng's view, the introduction of the cotton protection price policy, while giving the cotton farmers the lowest income expectation, is more important in restraining the rise and fall of the cotton planting area so as to form a reasonable balance with the grain sowing, so as not to compete with the grain producing and producing land.

Insiders said that the minimum purchase price policy of cotton was ready to come out in 2006 but failed to come out. On the one hand, it was related to operation and implementation. On the other hand, the state feared that it would aggravate the dispute over land use for grain and cotton.

"Land is generally used to grow grain, oil and cotton, and farmers will choose crop varieties through comparison of profits."

Ma Wenfeng said that China, as the largest cotton producer and consumer country, has a large demand gap every year, but its position is still inferior to the strategic significance of grain.