Domestic Cotton Temporary Storage And Storage Totaled 117940 Tons

Since its inception in September 10th, domestic cotton temporary storage and storage has been in operation for more than two weeks. With the new cotton coming on the market, the storage capacity has been increasing gradually. Xinjiang Cotton traded more than 80%. The industry believes that although the purchase and storage has stabilized the domestic cotton prices in the first half of the new year, the accumulated structural problems will gradually appear in the latter half.

As of September 25th, domestic cotton temporary storage and storage totaled 117940 tons, of which 96190 tons were accumulated in Xinjiang and 21750 tons in the mainland. "When the cotton spot transaction is more difficult, the storage will become the main channel." Ren Xinpu, vice president of Yongan Futures Research Institute, predicts that most of the high-grade cotton will be returned to the country in the year of cotton, which will lead to a relative reduction of cotton in the market distribution channels, thereby boosting cotton prices up. In addition, NDRC officials made clear last week that cotton would not be studied for the rest of the year. Import quotas The problem will also be put to a close by the end of this month, which will also ease the short-term stabilization of cotton prices.

According to Ma Junkai, cotton association of Dezhou city of Shandong Province, since September, some local cotton enterprises have started buying new cotton, but the purchase amount is not large, and they are mainly composed of grade four cotton and five grade cotton. The purchase price of local seed cotton is between 4.1 yuan and 4.2 yuan / Jin. It is also known that in the early September of the Hunan region, small cotton enterprises began to acquire new cotton, and the price was about 4 yuan / Jin. After the purchase and storage started, large scale cotton enterprises joined the takeover ranks. At present, the purchase price of new cotton has risen to 4.4 yuan / Jin.

According to the purchase price of grade four seed cotton, 4.2 yuan / Jin, 37% of lint and 1.25 yuan / jin of cottonseed cotton, the price of new cotton is about 19000 yuan / ton. According to the investigation of Wucheng and Xiajin in Dezhou Cotton Association of Shandong Province, the processing cost of local cotton enterprises is about 1260 yuan / ton. Taken together, the cost of new cotton is 20260 yuan / ton. However, according to the 2012 cotton temporary purchase and storage plan, the four grade cotton has a price difference of 3% over the three grade cotton, and the price of the storage and purchase is about 19800 yuan / ton. As a result, the cost of new cotton in Dezhou is more than 400 yuan per ton, and the purchase cost of new cotton is obviously high.

According to some cotton enterprises in Dezhou, the early stage is just exploratory acquisition, which does not represent the real purchase price. At present, the purchase price is on the high side, if the enterprise reserves, the loss will be more than 400 yuan / ton, if sold to the market, the loss will be over 3000 yuan / ton. Ma Junkai said that some local enterprises had to suspend their takeover, and the purchase price of seed cotton would probably drop later.

In the short term, the stabilization of domestic cotton prices is obvious. However, when the import quotas are no longer issued and the national cotton auction is stopped, how to meet the needs of textile enterprises in the later stage of high and medium grade cotton will also become the focus of market attention.

"The purchase and storage of this year only delayed the outbreak of the contradictions accumulated over the past two years in Cotton City, and the problem of cotton source and price in the later stage of textile enterprises will be more prominent." Grain futures cotton analyst Huang Cheng Bao It is said that under the normal circumstances of this year, the state will open up its storage and storage. If the amount of storage is equal to that of the previous year, next year, the state cotton stocks will be close to 7 million tons. But without the boost of China's demand, foreign cotton will hardly be able to show itself. The problem of excessive price difference will also exist. Without quota, domestic textile enterprises still have to use high priced cotton.

Insiders said that at present, cotton enterprises can only accelerate the turnover frequency. With the purchase and purchase, they can consider buying hedging in futures, and look at the futures price before and after the end of the purchase and storage.