Domestic Cotton Spot Prices Showed A Sharp Decline.

"I bet my youth on tomorrow." It seems a bit too much to use this lyrics to describe the cotton industry within the borders.

After the long holiday, Dragon Boat Festival cotton The spot market did not catch up with the festivity of the festival, but not only had no price, but also had a low turnover, and the price had dropped considerably. In addition, with the date of repayment of the cotton purchase loan of the Agricultural Development Bank approaching, the cotton bashful cotton hoarding enterprises had pledged cotton to the bank and the exchange market to finance and repay the loan.

China's cotton price index shows that cotton spot prices have dropped sharply for two consecutive days. Yesterday, China's 129 class cotton was 19648 yuan / ton, down 56 yuan; 229 grade cotton was 19351 yuan / ton, down 40 yuan; 329 grade cotton was 18431 yuan / ton, down 30 yuan. At present, the overall price is 1550 yuan lower than last year's storage price per ton, which is 9000 yuan lower than the highest spot price in March last year.

"The cotton purchase and storage work in 2011 has been stopped in March 31st, and no cotton merchants and cotton traders have come to buy cotton. Recently, we found a local Guarantee Corporation, like the mortgage property, which was mortgaged to a commercial bank and lent about 600000 yuan, which basically returned to the Agricultural Development Bank's loan and temporarily overcame the difficulty." Recently, the head of a cotton ginning enterprise in Akesu told reporters that their company processed nearly 2000 tons of cotton last year and handed over more than 1500 tons of storage. Up to now, more than 400 tons of high-grade cotton have been hoarded in the factory area. According to the monthly interest rate of 120 yuan per ton, from last October to now, the interest per ton has reached 960 yuan. If present market Price sales, profit per ton less than 2400 yuan.

The person in charge told reporters that the price of cotton seed purchased last year reached 9 yuan per kilogram, and the cotton accumulated on the warehouse and platform had lost about 2600 yuan per ton, with a total loss of 1 million yuan.

Korla family lint The person in charge of the acquisition company has already claimed compensation, and the loan repayment method is the same as those mentioned above. According to the person in charge, he bought 3000 tons of grade 229 cotton at the price of 20400 yuan per ton in Korla last year. Up to now, there are more than 240 tons not sold out, and there is a factory in Korla. According to the calculation of Korla 229 level cotton price per ton of 18500 yuan, plus loan interest, a loss of 2800 yuan per ton, accumulated losses of nearly 700 thousand yuan.

Statistics from the Xinjiang Office of the national cotton monitoring system show that cotton production in Xinjiang was 2 million 898 thousand tons last year, with a total turnover of 1 million 709 thousand and 400 tons. Apart from Xinjiang's 400 thousand tons of self owned cotton and about 150 thousand tons sold to the mainland's cotton textile enterprises, there are about 600 thousand tons of cotton in the hands of some cotton ginning enterprises in Akesu, Korla and Bachu and the cotton merchants in the mainland.

Yang Guoqi, an analyst at Jinshi futures, said that the spot price of cotton is 1500 yuan lower than that of the previous year, which is more than 800 yuan per ton, which is 800 yuan lower than that of the coming 2012. In the absence of corporate acquisitions and their own lack of funds to repay loans, cotton enterprises pledge cotton to banks and trading market financing repayment is helpless, and is the best way at present. But there is no doubt that the market will continue to be more risky.

Although in March 1st this year, the eight departments of the national development and Reform Commission jointly issued the "2012 cotton temporary purchase and storage plan", it was determined that China's cotton purchase and storage price was 20400 yuan / ton in 2012, but so far, it has not been clear whether it will open up and store as it did in the previous year. In 1-5 months, China has imported 2 million 579 thousand and 300 tons of cotton, and most of the textile enterprises in the mainland have been waiting for the sliding tariff to import cotton quotas. The number of cotton enterprises and trading companies in the territory is relatively small.

As of June 18th, Xinjiang has accumulated 780 thousand tons of cotton reserves, and there are still 1 million 390 thousand tons of Xinjiang cotton to be transported, including 1 million 120 thousand tons of reserve cotton. The Xinjiang cotton warehouse is basically full warehouse, and there is not much inventory available for cotton purchase and storage in the new year. Therefore, Xinjiang cotton enterprises are now generally confused and worried about future business. Some cotton companies say that this year will be more rational than last year, and they will not hoard cotton market after gambling.