Cotton Purchasing Enterprises Wait-And-See, Are Reluctant To Buy.

"Cotton production has been seriously reduced this year", which is the overall situation of cotton production in China this year. "Cotton prices fell the most this year", which is also the situation of the national cotton market this year.

This reporter learned from various sources that this year the state abolished the cotton purchase and storage policy for the first time, and took the lead in implementing the target price reform pilot policy in Xinjiang. However, the new policy has not yet been implemented in other regions, and the market price of cotton is currently only 3.5 yuan per kilogram, which is the lowest price in recent years.

The policy uncertainty has led to many cotton purchasing stations, processing enterprises dare not rush to cotton, this is the current situation of cotton purchasing market.

Cotton prices are low. Cotton farmers believe that the market price is not up to their expected price at present. Only when the price is right can they not lose money. However, the processing enterprises believe that the downstream cotton textile enterprises must enter the international market competition, and the domestic cotton price must be basically in line with the international cotton price, otherwise they will process cotton, and the textile enterprises will not buy it.

Research Fellow of the State Council Development Research Center

It is believed that under the background of oversupply of international cotton market, high cost of domestic cotton and high national cotton reserves, China will implement the new cotton policy, hoping to promote the long-term downturn of the cotton industry to upgrade and upgrade the quality of domestic cotton, reduce the price difference between domestic and foreign cotton, and increase the international competitiveness of domestic textile enterprises.

The reporter learned from the great wisdom finance and China cotton information network that the risk of low cotton price to cotton textile industry lies in the cotton yarn of related enterprises.

And so on, does the price of the product have "resilience"?

Affected by the decline in raw material prices, downstream textile prices are also partly under pressure.

At the same time, cotton price trend is unknown, such as continuous downward exploration, may also have a certain impact on the sales of cotton textile industry market.

The sharp decline in cotton prices has led to cautious orders for downstream cotton textile producers, and a steady cotton price will be conducive to order recovery.

This year, the state cancels.

Temporary purchase and storage policy, the implementation of the target price policy, but the new policy has not yet been introduced, cotton farmers have difficulty in selling cotton, processing and purchasing enterprises also dare not rush to buy, directly affect cotton farmers' enthusiasm for cotton planting next year.

Industry analysts believe that according to the current market trend, cotton prices are hard to pick up, which will definitely affect cotton growers' willingness to grow in the coming year.

At present, "selling cotton is difficult" continues, processing enterprises wait and see cautiously, cotton farmers wait and see, and textile enterprises reduce stock. Until the end of the year, when farmers have to sell cotton in large quantities, cotton market disorder is likely to happen.