Domestic Cotton Prices Suppressed Cotton Planting Area Reduced

Reporters learned that, in recent years, domestic spot cotton has no market price, the deal is cold and cheerless, and the price has dropped considerably.

In addition, the price difference between domestic and foreign cotton is very large. The textile enterprises are waiting for the sliding of the tariff quota of cotton imports. Therefore, there are fewer domestic cotton enterprises, and the domestic cotton sales are cold.

Has been suppressed.

Domestic cotton sales are cold.

For now

Zheng Yujie, a researcher in agriculture, forestry and animal husbandry and fisheries, said that on the one hand, the international economic situation is still not optimistic, and the demand for the international market is weak. On the other hand, the price difference between the domestic and foreign cotton is large, and the current price difference interval reaches 5000 yuan / ton.

Reporters learned that, at present, the international cotton price decline is greater than domestic, statistics show that 1~5 months, China's total imports of cotton 2 million 579 thousand and 300 tons, most of the mainland textile enterprises adhere to wait for quasi tariff cotton import quotas issued, so the purchase of domestic cotton enterprises less.

Because of the high price difference between domestic and foreign cotton, the import cotton will continue to grow in the future, which will bring great impact to domestic cotton.

Industry insiders said that the main reason for the poor price of cotton inside and outside is that in the context of global cotton production, the aggravation of the international financial crisis has led to a serious imbalance between supply and demand. The commodities, including cotton, appeared the most extensive and the largest decline after the financial crisis. The current price of US cotton fell by nearly 50% compared with the same period last year. On the other hand, the reason for the temporary cotton purchase and storage policy in 2011 is not only stabilizing domestic cotton prices, but also stabilizing the international cotton prices.

Zheng Yujie said, because the global economic situation is still uncertain, the domestic cotton market will not be optimistic.

Related industry insiders said that although domestic cotton spot prices have risen slightly, the cotton year is coming to an end.

It is also about to enter the seasonal peak season. Under the demand driven and national policy protection, the possibility of a gradual warming of cotton prices is increasing. However, considering the factors such as the improvement of downstream consumer demand and the intensity of national regulation, there is little room for price rise.

Reduced cotton planting area

The reporter learned from the China Cotton Association that the national cotton sowing was basically completed. As of the end of May, the progress of cotton sowing to the field in the whole country was 96.8%, down 1.6 percentage points compared with the same period last year.

According to the sampling survey of cotton farmers' sowing area, the cotton planting area in China is 72 million 820 thousand mu this year, which is 9.2% less than that in 2011.

The analysis shows that the main reason for the decrease of cotton planting area in 2012 is that the cotton purchase price in 2011 is not as good as that expected by cotton farmers. In addition, cotton production is reduced, and cotton growers' cotton planting income has been greatly reduced, which has affected cotton growers' cotton planting enthusiasm.

Zheng Yujie told reporters that China's cotton planting area has been reduced this year, plus many areas are in flood season. It is expected that cotton production will be greatly reduced this year. Cotton prices will rise in a certain range in the later stage, which will increase the enthusiasm of cotton growers. It is estimated that cotton planting will increase this year compared with this year.

Cotton spot will remain low

Despite the coldness of the cotton spot market, Zheng cotton has been rising for several days in recent days. Can the price rise of the futures market drive the price rise in the spot market?

In this regard, Zheng Yujie believes that although the price rise of the Zheng cotton futures market has led to a slight rise in the spot market price, the price rise in the cotton futures market is only a flash in the pan when the international economic situation is not completely improved.

Insiders said that the new year's policy of purchasing and storing the new year has been supported. The market has not found this support point. The cotton spot price will remain low after the downstream market can not see the pessimism of the market outlook.