Domestic Cotton Prices Increased Slightly

It is understood that in recent years, the purchase price of domestic cotton seed rose steadily before the Spring Festival.

At present, in Shandong, Hebei and Jiangsu, the price of seed cotton to factories is concentrated at 2.75~3.20 yuan / Jin, up by 0.01~0.05 yuan / Jin compared with before.

According to the insiders, the five provinces of Anhui, Gansu, Jiangxi, Shandong and Hebei issued the implementation plan of Cotton Subsidy in 2014, but the policy was relatively late, and the cotton planting benefit was not good.

According to the cotton planting area of China Cotton Association January 2015, it is estimated that the average planting intention in the whole country will drop by about 25.4% in 2015, and the output of cotton will also be reduced.

In addition, post harvest cotton seed purchase has entered the late stage. There are not many sources of leftovers in the market. At present, cotton growers are not in a hurry to use money and sell at low prices, so as to keep up with the price.

Meanwhile,

Spot prices are rising steadily.

At present, the 3128 grade lint factory of Jinning production area is quoted at 12800~13300 yuan / ton, and the 4128 grade lint price is between 12500~12800 yuan / ton, and the spot price of lint in some areas is up 50~200 yuan / ton before the Spring Festival.

There are market participants analysis, from the raw material perspective, the current domestic

After the purchase and sale has entered the post market period, there are not many sources of goods left in the market, and the cotton planting area in the new year has declined. Cotton growers are sticking to seed cotton prices, raw material prices are rising, and the production cost of the cotton mill is increased, so the spot price of lint goes up.

From the inventory point of view, the overall running rate of the ginning plant is not high, and the spinning enterprises are replenishment.

Not much. Most of the cotton is concentrated in the national reserve. As long as the national reserves are not sold and the market supply is not large, the cotton mill also supports the price of linen, which makes the spot price of lint rise in the near future.

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Since 2013, cotton production has been in a predicament. In that year, the charm of "emperor's daughter and snow white" was dim.

Wu Renming, director of the Bureau of grain and oil, Changde Bureau of agriculture, analyzed cotton production for four reasons.

Reason 1: severe climate loss causes serious reduction.

The hot and dry weather from 6 to August in 2013, the heavy rain in from August 23rd to 25th and the continuous rainy weather in early September resulted in a significant reduction in autumn peach and a large number of rotten bolls in the later stage.

The long rainy weather from 5 to June in 2014 led to the prolongation of the seedling stage, the stunted growth and development, the poor overall growth of cotton, the low temperature in August, and the rainy weather in September, which affected the Bolling rate of cotton, and reduced the number of autumn peach and late autumn peach, and increased the number of rotten bolls, resulting in a serious reduction in cotton yield than in normal years.

Reason two: cotton prices continue to fall.

In the early 2011, after the domestic cotton market was difficult to sell, in order to protect the interests of farmers, the state implemented a temporary cotton purchase and storage policy for 3 consecutive years, resulting in a huge increase in state reserves.

So far, the stock of China's reserve cotton management company is more than 11 million tons, while domestic cotton consumption is only 600 to 8 million tons per year, forming a situation that supplies far more than sales.

Because of the difference between domestic and international price mechanism, the difference between domestic and international cotton price spreads is quite large.

In 2014, the state adjusted the relevant policies, and domestic cotton prices began to go down all the way.

To achieve domestic cotton prices in line with international prices, there is still a big drop in domestic prices.

Reason three: the state has made a major adjustment to the cotton purchase and storage policy, that is, "cancel the temporary cotton storage and purchase, and start the pilot project of cotton target price subsidies in Xinjiang".

In recent years, affected by temporary purchasing and storage, the development of cotton industry has shown a special form. In the market, cotton can not be found, and cotton storage has become the only way. Under the pattern of excessive concentration of cotton, the risk of cotton regulation is too high, the price is high, the price is high, the price is low and the farmers are injured.

At present, the government needs to unload the burden gradually, so that the cotton industry will steadily return to the market and the cotton price will be determined by the market.

Reason four: the rural labor force has been greatly reduced. However, the cotton production season is longer and the labor cost is much higher.

At present, the main labor force of cotton planting in our city is the elderly and women. There is a widespread shortage of labor. It is very difficult to achieve the traditional intensive cultivation mode for cotton planting.

Cotton growing is due to the long growth cycle, and it belongs to the crop which needs more labor. Moreover, the price of labor is rising constantly, resulting in the rising cost of labor, which affects the benefit of cotton planting.