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    Cotton Prices Fell Sharply By &Nbsp; "Cotton Storage" Became A Helpless Move.

    2011/6/13 17:38:00 79

    Cotton Prices Export Lint

    Cotton growers: Cotton in hand can not sell this year's cotton price turbulence, it can be said to have reached its peak. The maximum price difference per catty reached 2.5 yuan.

    It is understood that the price of cotton sold by cotton farmers at present is about 4.6 yuan per catty. If the cotton production volume is 10 thousand jin, the price will be reduced by 20 thousand yuan compared with last year's price.

    This is not a small number for an ordinary cotton seed.

    Recently, reporters interviewed cotton farmers learned that in June 5th some people sold cotton for 4.9 yuan / Jin, but by June 6th, some cotton farmers only sold to 4.5 yuan / Jin.

    A cotton farmer in Xiajin named Li Xing told reporters that "the cotton harvest at home was sold last October, but there were few people receiving cotton at that time.

    It may be because the price is too high, the cotton farmers can not sell well after buying cotton, or earn very little money. Some small farmers who run the cotton business simply stop doing business.


    Cotton collector: "cotton storage" is helpless in the cotton industry chain, because the turbulent cotton prices cause economic losses not only for cotton farmers. Recently, cotton farmers in Lingxian County, plains and Ningjin also complain incessantly. They have said that such "up and down" cotton prices have hurt them.


    Mr. Wu, the collector of cotton in Ningjin, has been doing this business for three or four years. Now the cotton storage in the house has been almost processed. "There are still more than 10 thousand pounds left. We are not going to sell it. Let's put it first. We can't sell it too much."

    It is understood that Mr. Wu bought cotton last year after the autumn harvest. The average price at that time was 6.3 yuan per catty, and now only 4.5 yuan per catty, and selling cotton to processing enterprises at the present price, so he lost too much money himself.

    Mr. Lu of Lingxian County has bought cotton for five years, and now there are more than 30000 Jin of cotton stored at home. I don't know how to deal with it. "This year's cotton business is really hard to do."

    Mr. Lu sighed.


    Mr. Wang of Lingxian County has bought cotton for more than 10 years. Speaking of the cotton prices of last year and this year, he said, "this year is the most difficult year for me to do this business. I have never encountered such a big takeover price."

    Mr. Wang's business is relatively large, but this means that his losses may be even more serious.

    Now Mr. Wang has 200 thousand pounds of cotton in the house, and the purchase price is mostly 6.5 yuan and 6.6 yuan per catty.

    "Cotton price estimate is not that high. If it can rise to 5.2 yuan per catty or 5.3 yuan, I will sell these cotton reserves. This is not always the way to store them, but at this stage, it is still not possible.

    I am still buying cotton, buying it and then selling it to cotton processing enterprises to maintain the normal operation of capital.

    Mr. Wang has been buying cotton in Hebei recently. It is understood that the stock of cotton farmers there is relatively large, generally more than ten thousand jin, and most of the 200 thousand kilograms of cotton that he had saved before was bought locally in Dezhou.

    "Now the price of cotton is too low, many local cotton farmers do not want to sell, but also want to put it aside, hoping to sell a higher price."


    Cotton spinning enterprises: Dilemma and finding a way out

    Cotton price

    The sharp decline is not just for cotton farmers and cotton farmers, including cotton processing enterprises, textile companies and garment exporting enterprises. They are caught in a quagmire of price.


    The so-called cotton processing is the processing of seed cotton.

    lint

    Dezhou's Yun Hui textile raw material processing company is a company of this type. Li manager of the company told reporters, "so far, there are 300 tons of cotton stored in lint form in the factory. If sold at the current price, it will pay ten thousand yuan per ton, so the loss will be three million yuan."

    In September 15, 2010, the company began to put into production. The purchase price at that time was 6.7 yuan to 6.8 yuan per catty, and the price of lint per ton was 31000 yuan. Fortunately, a portion of it was sold at that time.

    "I did not expect cotton prices to drop, so at the peak of cotton purchasing, the main energy was placed on the purchase of seed cotton, resulting in the current lint stock of the factory reached 300 tons."


    The current cotton price is about 4.7 per catty. Most cotton farmers and cotton farmers have a large psychological gap. They are reluctant to sell cotton. Therefore, processing enterprises need to spend a lot of energy on purchasing cotton.

    "We are now processing and selling now, so as to offset the cost of storage, processing and pportation of cotton and maintain the normal operation of the company."

    It is reported that most cotton processing enterprises are faced with such a dilemma. On the one hand, too much cotton is stored, and the cost of storage is greatly increased. But if sold, the loss of cotton prices will cause greater losses. On the other hand, the production capacity of cotton processing enterprises is already very strong at the present stage. Because of the difficulties in the acquisition of seed cotton, the production data and productivity will be wasted, which will undoubtedly cause certain economic losses to enterprises.

    "Now we are really afraid to sell lint and lose too much. We can only see the market going. Cotton prices are not controlled by us. We can only wait for the price to go up.

    If we go on like this, we will soon be unable to sustain cotton processing enterprises.


    There are also textile enterprises affected by cotton prices. Most of the textile enterprises are not able to order large quantities of goods because of the sluggish downstream market. For example, before entering the fabric 30 tons at a time, most of them can only enter 1 tons at a time.

    In this way, for textile enterprises whose productivity is large enough, they will inevitably lead to two kinds of results: stop production or reduce production, cause waste of production materials, or increase storage.

    cost

    Such a trend is bound to make some small businesses that are less resistant to market turbulence face the risk of bankruptcy.


    But compared to cotton farmers and cotton farmers, textile enterprises still have a way to go, not entirely passive acceptance.

    Dezhou Heng Hua Textile Co., Ltd., responsible person told reporters that the company is slowly reducing its dependence on cotton fibers, began to reduce the pure cotton products, the production of polyester and cotton blended fabric, some new fiber products, such as soybean fiber, bamboo fiber are also being developed.

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