Cotton Prices May Fall Further In Response To The Euro Crisis

At 11 a.m. yesterday, Li Hualai, a villager in Liu village of Caidian midget street, raked cotton in the warehouse of Cotton Corp bank with a rake.

In the past month, he spent 10 hours a day in silver Xiang raking cotton, and he could earn 80 yuan and two free lunches.

"A quarter of a worker can earn 5000 yuan, a year more than I do this year."

At the moment, Li Hualai's home has not been picked up in the field of cotton, to the family slowly picked up.

"Cotton is not planted next year. It was hurt this year."

Li Hua came to 4 families and planted 8 mu of land.

Last year, cotton catty sold to a good price of 7 yuan, making him earn more than 1000 yuan per mu, and it fell to nearly 10000 yuan.

This year, he collapsed and hoped to reappear a wave of last year's market.

Unexpectedly, the price of cotton is only 4.25 yuan per catty when it comes into the market. The lowest time is only 3.89 yuan, which is equivalent to last year's "waist cut" price.

He hurried to hire someone to sell the cotton in the field as soon as possible and sell it to the cotton plant as soon as possible. The last checkout was only 500 yuan per mu, and 4000 yuan for 8 acres.

It is said that an acre of cotton land can be harvested at a harvest of more than 600 Jin of cotton and sold at 4 yuan per catty.

Li Hualai broke his finger: fertilizer, the lowest time 2 yuan a barrel, now rose to 10 yuan a barrel, the labor price, last year 50 yuan, one day can ask a person to help pick cotton, this year will spend 70 yuan, but also to manage rice.

In a variety of ways, a catty cotton seed can be sold for more than 4 yuan to keep its capital. "But now the purchase price has been reduced to 3.8 yuan. I planted one year to claim my own labor."

Villagers in the village are feeling chill this year and are planning to grow other crops next year.

Occasionally, it was suggested that cotton prices fell this year, and everyone changed their crops. Next year may be in short supply.

Li Hualai has heard that imported cotton is now very cheap. "We do not grow, and foreign farmers are also planted. With such a heavy heart, I might as well grow corn, harvest mechanically, reduce labor costs, and save more heart than cotton."

Since last year, cotton has gone through a "thrilling" market.

In less than a year, the price of cotton fell from 32 thousand yuan per ton to 19 thousand yuan.

The sudden shrinkage of downstream market demand and the amplification of market supply after the stir fried market made the cotton market plunge into freezing point.

In 2010, the purchase price of cotton climbed from 7 yuan per kilogram to 14 yuan.

Buyout companies compete with textile cotton companies to drive up prices, and the whole market gradually loses rationality and climbs to the top.

At the end of last year, prices began to fluctuate, and many of the hoarding companies were not shipped, and cotton farmers increased their planting in wishful thinking.

Until this year, cotton prices all along the way, leading to a serious imbalance between supply and demand.

Cotton Association experts told reporters: "cotton prices are mainly related to the following factors: first, the surge in cotton last year, forming the peak of cotton planting, and this year's good weather and cotton harvest; second, low price imports of international cotton, occupy the domestic cotton market."

The reporter found that the reduction of downstream usage even made the high price of cotton lose support.

Wuhan clothing industry insiders explained: "the cost of chemical fiber fabrics is 30% lower than that of cotton, which makes consumers and enterprises favor the former under the background of inflation. In addition, the technological improvement of chemical fiber fabrics makes it a fashion trend. More importantly, domestic cotton prices have plummeted and plummeted, making the industry have to look for alternative fabrics."

It is reported that this round of ups and down prices have not stopped.

"I only bought cotton from Xinjiang, and this year's market is not optimistic."

Wuhan Jiangnan textile group purchasing chief disclosed that the cotton price per ton reached 30 thousand yuan last year, and the new cotton price predicted this year is up to 22 thousand yuan per ton. It is not thought that the reality is cruel. The national temporary storage and storage standard grade lint comes to the warehouse price of 19800 yuan per ton, while the Hubei cotton market paction price has been as low as 19000 yuan, and the Shandong cotton price has dropped to 18000 yuan.

Last year, the demand for cotton was estimated at around 10 million tons this year. The actual demand for this year's demand is about 8 million tons, which is basically the same as that of the whole country.

Speaking from the relationship between supply and demand, cotton prices may still have a downward trend.

Related experts remind: "cotton market, such as the stock market, superficially is caused by capital flow, in fact, information asymmetry is one of the important reasons.

If this problem is not solved, sooner or later the market will rise again and again.

1 tons in deficit of 1 tons

Purchaser

Helpless "half warehouse"

Huang Guochang, who "served" cotton for more than 20 years, ushered in an unexpected market this year.

As the business leader of Wuhan silver Xiang cotton Co., Ltd., he witnessed the first rise and fall of cotton purchase this year.

"Now we lose 1 tons per 1 ton, so our 2000 ton warehouse has only half warehouse cotton."

From September 7th to September 22nd, the purchase price of cotton also rose, and seed cotton rose from 8.2 yuan per kilogram to 8.8 yuan. Then it began to descend all the way down to 0.04-0.06 yuan per day, and fell to 7.8 yuan per kilogram.

"Silver Xiang" covers an area of 31 mu, and the total amount of cotton purchase can reach 2000 tons. It can be considered that the market is still going down, and the loss of goods means loss.

So the warehouse is half empty now.

"As far as we know, now downstream textile mills are also afraid to easily purchase goods, the past cotton stocks are able to last a quarter of the amount, now is to buy one day a day, the same day settlement."

Yin Xiang is the raw material base of a cotton plant. Despite the fluctuating price of the purchase, Huang Guochang, who has been in the textile mill for many years, has the operation experience of cotton fluctuation, and controls the quality of the purchase, and reduces the purchase of water and impurity seed cotton, which is conducive to the cost savings of the latter process. "From this point of view, we have not lost any more money than the simple cotton purchasing enterprises."

What really worries Huang Guochang is that because of the bad market this year, the farmers' enthusiasm for planting cotton has been hurt, and the production may be reduced next year.