Cotton Prices Rise And Fall, Some Cotton Processing Enterprises "Cut Grain"

In recent years,

The trend of prices is going up and down.

Recently, the supply and marketing cooperatives in Hefei investigated cotton market, reduced cotton production and increased costs, and some processing enterprises could not start.

Only 500 yuan per mu of cotton

Hefei is one of the most important cotton producing areas in the whole province, but in recent years, the planting area has been greatly reduced, from 550 thousand mu in 2011 to about 400 thousand acres this year. Among them, the decline in Changfeng county is more obvious, from 100 thousand mu in 2008 to less than 40 thousand mu this year.

The main reason for the decrease of cotton area is the decrease of comparative benefits of cotton seed.

In recent years, grain production has basically been mechanized, and labor costs have declined and incomes have increased.

At the same time, some local characteristics of agricultural industrial projects, such as strawberries, grapes, watermelons and so on, because of the high policy subsidies, attracting many farmers to plant.

Planting cotton is still dependent on manual labor. The net income per mu is only 513 yuan, and the average cotton grower is only 10 thousand yuan a year, which greatly dampens the enthusiasm of farmers for cotton planting.

Production decreases and quality drops slightly.

Since July, the two cotton growing areas of Chaohu and Lujiang in Hefei area have been damaged by typhoons, but the losses have not been great. The rainfall in Feidong, Feixi and Changfeng cotton areas has been significantly reduced. Early maturing varieties are affected by drought and rain in the flowering and Bolling stage, and the boll weight is reduced and the bolls are seriously shedding. The cotton yield is expected to decrease by 10%~15% compared with the normal year.

There are 9 types of 400 cotton ginning enterprises in Hefei, which began to be bought before September 10th. According to the data from the Provincial Bureau of public inspection, the grade of cotton is not ideal this year, and the four grade cotton is the mainstream.

At present, the purchase price of cotton in Hefei area is less than 4.2 yuan / Jin ~4.3/ Jin Yuan.

Cottonseed prices in the same period have experienced a sharp fall in the market, with a huge decrease and light turnover.

Looking ahead, due to the oversupply of global cotton in 2012, domestic

In the context of the European debt crisis, there is no sign of recovery. The days are still very difficult, and the possibility of domestic cotton futures market and spot market going down is increasing. However, due to the support of the state's policy of purchasing and storing, the domestic cotton market is relatively balanced.

Some processing enterprises "cut grain"

Faced with the grim situation of the cotton market this year, the provincial agricultural development bank has increased the risk control of the cotton purchase loan, the distribution process is more stringent, and the lending speed is relatively slow, which has brought some financial pressure to the cotton business enterprises.

Because most cotton growers are now going to hand over cotton to brokers and buy them at a price lower than the purchase price, they are handed over to the cotton processing enterprises. The interests of the cotton growers are damaged and the cotton farmers' interest in selling cotton is damaged.

In the face of the difficulties brought about by the decrease in cotton production and the increase in costs this year, many of the 400 type of cotton ginning enterprises are under construction and even unable to start.

The head of Hefei supply and Marketing Association said in an interview with reporters that the trend of cotton will affect terminal cotton products.

There may be a new round of cotton products going up in the future.