Cotton Prices Fall, Cotton Yarn Trading Is Cold, Experts Say, Should Be Eliminated.

It is reported that since June, there is no expected reverse trend of cotton textile demand in the lower reaches of China, and the de stocking of spinning and weaving enterprises is under great pressure. Influenced by policy and market, Cotton price The cotton market trading is stagnant.

A word "fear" reflects the trend of cotton market in recent days.

Li Yuhu, the garden town of Leling, Dezhou, Shandong, used to be a famous cotton grower in the area. It used to grow more than 200 mu of cotton at most. But this year, faced with the low cotton prices, Li Yuhu gave up the idea of planting cotton: now there are more factories, and cotton is too expensive.

A word "fear" reflects the trend of the cotton market in recent days. Shandong's cotton producing city, Dezhou cotton spot trading and seed cotton purchase price continued to fall, the local cotton market is sluggish, and the transaction is not improving. Today, the sale of local 3 grade real estate cotton in Dezhou is 23800 yuan / ton, 700 yuan / ton lower than in June 27th, 23000 yuan / ton hard, 4 yuan / ton five, and 900 yuan / ton. The sharp fall in cotton prices has made bosses engaged in cotton acquisitions panic and rush to ship. But there is no market price, many textile enterprises do not intend to purchase in the near future.

I want to stop working for a few months and send the workers home first.

A cotton processing plant near the cotton trading market in Xiajin said reluctantly, "I want to stop working for several months, send the workers home first, and wait until a few months to say that the factory next to it has been shut down several times."

According to industry analysis, the recent decline in cotton prices is mainly due to a sharp decline in cotton prices since late March 2011, dragging down the selling price of yarn and cloth, and selling situation continues to turn weak, and the backlog of funds for textile enterprises is serious. In June 25th, the relevant state departments announced that they would take effect from July 1st. Blended fabric And other textile raw materials import tax reduced from 12% to 6%, resulting in a major blow to local cotton prices; in addition, the domestic electronic disk market price of cotton re opened the downward path, especially in recent months, the contract price is even lower, the market confidence has been greatly reduced, and the pressure from banks to repay loans has increased significantly.

Ma Junkai, Secretary General of Dezhou Cotton Association: low in five or six months. It is possible to go up in August July, and the space for uplink will not be too large.

At the same time, the benefit of cotton planting is low, and the enthusiasm of cotton growers can not be mobilized. Compared with grain production, planting cotton is more invested, less subsidized, time-consuming, laborious and risky.

Ma Junkai, Secretary General of the Dezhou supply and Marketing Association Cotton Association, has a lower income than the grain seed pepper. It costs much time and effort to plant cotton, and the degree of grain mechanization is relatively high. Most of the rural young people go out to work, and the rural labor force is rather scarce. There are good seed subsidies, grain subsidies and comprehensive subsidies for agricultural products. Seed cotton is only subsidized by cotton varieties, and there is no comprehensive subsidy for seed cotton subsidies and agricultural subsidies. The grain has the lowest purchase price policy, the farmer's heart is steadfast, the cotton is not.

In view of the current trend of cotton prices, experts suggest that the majority of cotton farmers should reduce their psychological expectations, eliminate the mentality of reluctant to sell, release their mentality and sell at a timely rate. Cotton textile enterprises should also practise internal strength and improve products. added value We should speed up structural adjustment and industrial upgrading and get out of the cotton bear market as soon as possible.