Cotton Yield Reduction, Seed Reduction Low Price Temporarily Difficult Acquisition

Because cotton planting disadvantage is more obvious, in recent years, the cotton planting area in the mainland has decreased year by year except for a few special plots or interplanting requirements.

The overall decline in this year was 30-40%, with a low 20%.

In addition, weather factors, the long drought in the north and the continuous rain in the South have reduced cotton production to varying degrees. The overall listing volume will decrease significantly compared with last year.

Even under the support of state reserves, cotton growers' enthusiasm for cotton planting is still decreasing, which fully shows that cotton planting income has reduced the attractiveness of farmers.

Cotton growers in the year

We still have high hopes that we should not lower its price than last year's price.

Since early September, sporadic purchase prices have emerged in all parts of the region.

The highest is 4.20-4.50 yuan / Jin line (moisture below 10%, lint 38-40%).

But they are all small bow houses.

Cotton enterprises are indifferent to this price; there are a small number of cotton enterprises in Hebei and Tianjin. The price is low at 3.30-3.50 yuan / Jin, and the highest is 3.60-3.70 yuan / jin (water content is 17-23%, 38-39% of lint). Although the price is temporarily favorable, the demand for spot lint and cottonseed is not positive, and cotton enterprises dare not buy large quantities.

Cotton seed prices are down and cotton farmers are reluctant to sell.

In this tug of war, cotton farmers will not sell cotton seeds at a low price in the early stage, and cotton companies can only wait for the upstream and downstream positions to fully enter the market.

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In recent days, Zheng cotton futures gradually fell, and the 1501 contract in September 9th was another record low, to 13440 yuan / ton, which severely depressed the spot market.

Textile enterprises operating no profit, high price lint procurement shrinkage, market spot trading fragmentary, Tianjin and Hebei individual cotton enterprises processing a new lint a small deal, the price of 16000 yuan / ton line.

The survey was informed that the textile mill was restricted by high price cotton in recent years, and replaced by chemical fiber or imported cotton, such as the spot price of lint in the new year is higher, and the purchase volume will not be too large.

In addition, since the state store, 400 cotton enterprises have been processing the lint storage and storage, and gradually lost contact with downstream customers. At present, the downstream market and customers need to be revisited, with fewer orders and intentions, which simultaneously restrict their enthusiasm for entering the market.

The policy of Xinjiang direct subsidy is not clear. The price of upstream raw materials and downstream lint can not be grasped. Cotton enterprises have no bottom in mind. In order to avoid bigger risks, some cotton enterprises have already finished the equipment maintenance, and have prepared funds.