Domestic Seed Cotton Purchase Price Basically Stable

In mid January, domestic seed cotton purchase prices were basically stable, and some areas rose slightly, most of which were 2.70-3.10 yuan / Jin in Xinjiang, and 4.0-5.0 yuan / kg in the mainland. Seed cotton prices have risen slightly, while spot prices are still weak. As of 12, the domestic cotton enterprises 3128 lint factory price quoted at 12600-14300 yuan / ton, and 11 was flat, 4128 grade lint factory price quoted at 12300-13000 yuan / ton, individual cotton enterprises lowered the price of 200 yuan / ton.

Market analysis, as of now, there are still three bad factors to suppress the spot market:

First, Zheng cotton futures stagflation fell, as of Friday (9), Zheng cotton main CF1505 contract closed at 13110 yuan / ton, compared with last Wednesday (7 days) fell 150 yuan / ton, weak domestic and foreign futures market oscillation, is not conducive to the spot market.

Two is cotton Output exceeded expectations. According to the national cotton market monitoring system processing professional office data, as of January 9th, Xinjiang cotton processing total more than 4 million 90 thousand tons, the market predicts that Xinjiang cotton production this year will exceed 4 million 200 thousand tons or even 4 million 500 thousand tons. This is ahead of the previous market's expectation of cotton production in Xinjiang at around 4 million tons. Coupled with the huge reserve stock of the state treasury, the supply of cotton is abundant, and cotton consumption has not improved significantly this year, and the cotton price has been continued to be suppressed.

Three, near the end of the year, some enterprises are strained in order to speed up the return. capital Some companies have expanded the profit margins for downstream enterprises during the sales process. The price of yarn has been dropping more recently. The price of conventional yarn has dropped by 100-200 yuan / ton since 2015. Individual yarn The branch fell by 300-400 yuan / ton. In addition, orders are still dominated by small orders and short orders. Manufacturers are mostly single producers, and the market is rather light. The willingness to buy lint from textile enterprises has gradually declined, and the turnover has shrunk.

However, due to the late introduction of the direct subsidy rules, cotton farmers are reluctant to sell. The cotton enterprises do not have enough processing resources, the overall start-up rate is not high, the output of lint is relatively limited, and some cotton enterprises still hold high cost lint at present. Generally speaking, in the case of weak demand, it is expected that the spot market of lint will continue to operate in a weak and competitive position before the Spring Festival.