Cotton Temporary Storage And Storage System: Stable Planting And Weakening Raw Material Price Expectation

In order to stabilize cotton production,

According to the plan of collecting and storing, 13 cotton producing provinces (districts and cities) in Xinjiang and Shandong are temporarily collecting and storing the price of standard cotton linen to the warehouse price of 19 thousand and 800 yuan per ton.

Market analysts believe that the release of the reserve plan at the critical moment of cotton planting is equivalent to setting the minimum purchase price for the new cotton market to stabilize the cotton planting area and purchase price this year.

Shandong Dezhou is one of the key cotton producing areas in the country, and its cotton spinning capacity is 1/20 of the whole country.

Ma Junkai, Deputy Secretary General of the Dezhou Cotton Association, thinks that unlike previous releases of temporary storage and storage of cotton, it was released before the cotton began to grow in large areas, which helps the cotton farmers in this year grasp the price information this year and guide cotton farmers to determine the planting area according to the cost accounting.

Ma Junkai believes that compared with previous years, cotton is still running at a high price. Early publication of this year's temporary purchase and storage price will help to cool down the current cotton price and reduce the cost of downstream textile enterprises, thereby easing the upward pressure on clothing and other commodities.

Tan Yanwen, a professor at South China Agricultural University, thinks that the plan and price of the purchase and storage should be announced ahead of time, so that cotton farmers and cotton producers could have a good production plan in advance. At the same time, the promise of open storage and purchase can make cotton merchants feel free to buy and make sure that cotton farmers are benefiting. In fact, they also play the role of the lowest purchase protection price.

Statistics show that since 2010, cotton prices have been constantly updated, taking cotton futures zhengmian 109 contract as an example, rising from 19 thousand and 855 yuan per ton in September 17, 2010 to 33 thousand and 600 yuan in November 10th, or more than 69%.

After a period of adjustment, it rose to 34 thousand and 870 yuan in February 17, 2011.

According to the cotton temporary purchase and storage plan, in order to further protect the interests of cotton farmers, the cotton temporary purchase and storage system continues to adopt the previously effective link mechanism between the price of the cotton picking up and storage price and the seed cotton purchase price. According to the price of the cotton temporary storage and price, the cottonseed and other by-products prices, the reference price of the seed cotton purchase is announced, and it is required that the storage enterprise must purchase the cotton seed cotton seed at the price not lower than the seed cotton purchase price, otherwise it will not be allowed to enter the storage.

Ma Junkai said, "the main reason for the low enthusiasm of farmers is cotton prices and the low profit of cotton seed production. If this situation is not improved, it will continue to cause harm to cotton farmers' enthusiasm and intensify the contradiction between supply and demand of cotton.

According to the price stipulated in this temporary purchase and storage system, it will help to restore the enthusiasm of cotton farmers.

But he thinks that generally speaking, cotton starts to grow on a large scale starting from mid April of each year. The price of temporary storage and storage now announced will help increase the planting area of cotton this year. But at present, most farmers have reserved cotton plantations ahead of time, and other crops are left in surplus. The increase in production will not be obvious.

At the same time, analysts pointed out that the relative price of 19 thousand and 800 yuan relative to cotton prices in the short term will stimulate cotton farmers' enthusiasm for cotton planting, remains to be seen.

According to a survey of cotton planting intentions of 2579 cotton growers in 13 cotton producing provinces and autonomous regions in March, the cotton association of China has shown that cotton planting area has increased in most parts of the country. It is estimated that in 2011, the area of cotton planting in the whole country will be 80 million 960 thousand mu, and the growth of cotton will be increased by 5.1%.

Experts believe that the introduction of the policy of collection and storage is more important, which is to restrain the rise and fall of cotton planting area and purchase price, so as to form a reasonable balance between grain sowing and planting.