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Cotton Purchasing Season Is Not Prosperous &Nbsp; Fear Cotton Price "Roller Coaster" Comeback.

2011/11/10 9:40:00 15

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October and November are cotton acquisitions everywhere.

Busy season

However, there is no rush to enter the cotton shopping area during the peak season. Cotton growers who expect cotton prices to rise are in the cold market. Compared with the same period last year, a sharp contrast is that the paction between cotton growers and purchasing processing enterprises has reached a deadlock this year. Seed cotton prices have continued to go down. Some farmers even feel panic. The current low cotton prices have made textile enterprises, cotton enterprises and cotton farmers in trouble.

Cotton prices "roller coaster" injured not only cotton farmers, cotton enterprises, textile enterprises, clothing enterprises have been greatly affected, so how does the price fluctuations that do not meet the value of cotton? Song Jiening, a researcher of agriculture and forestry, animal husbandry and Fisheries of China investment adviser, pointed out that the root of the problem still depends on the supply and demand of the market. The origin of the industrial chain of textile and clothing stems from cotton farmers' planting of cotton. Because of the low degree of intensive agricultural planting in China, most of them are [14.801.86%] crops planted in families, so there is no rational global planning.

"Catching up or catching up" is a common phenomenon in the agricultural market. Last year, cotton prices were high.

Quotation

Quite a few

Peasant household

The cotton planting area has been greatly increased in order to profit from it. This has greatly increased the planting area of cotton, and this year's climate is suitable. The cotton production area has a good harvest and the supply has increased significantly.

Recently, the new cotton market has entered the peak period, and seed cotton prices are showing a downward trend, which makes cotton farmers reluctant to sell strong emotions. Taking Dezhou, Shandong as an example, the cotton seed picking has reached over 95%, while the sales progress is less than 10%.

The investment analysis and prospect forecast report of the 2011-2015 China cotton textile industry released by CIC pointed out that the cost of raw materials and accessories in cotton textile industry generally account for 60%~80%. Therefore, when cotton prices fluctuate, cotton textile enterprises are more cautious about purchasing cotton.

The continuous decline of cotton prices has seriously frustrated the enthusiasm of cotton producers. Zhang Yanlin, director of the Investment Research Institute of CIC, expressed concern about this situation. If the cotton growers are affected by the market situation again and adopt blindly follow the wind planting plan, the sharp reduction of cotton production area will have a great impact on cotton production, which is bound to set off a new round of cotton price "roller coaster" to make the industry chain once again frustrated, and the impact of this high frequency price impact will bring some small and medium-sized enterprises on the industrial chain to life and death dilemma, and at the same time will further restrict the pace of development of the industry.