The Long Staple Cotton Market Has Come To A Halt.

After the Spring Festival, the long staple cotton in China is going green all the way. Taking a ginning factory in Akesu as an example, its 137 grade long staple cotton rose from 26700 yuan / ton in February 21st to 28300 yuan / ton in April 21st, and in two months it rose 1600 yuan / ton, or 5.99%. "Average weekly rise of 200 yuan / ton, such a good market is rare." The head of the plant said, however, this week's long staple cotton market has stopped sharply.

As of 22 days, Xinjiang Awati County ginning factory 137 and 237 class pick-up price were 28300 yuan / ton, 27200 yuan / ton, compared with last Wednesday (15). In the mainland, the 137 and 237 levels of the the Yellow River River Basin were priced at 28500-28600 yuan / ton, 27400-27500 yuan / ton, and prices remained stable, and the pace of sales of some enterprises also slowed down. The head of a cotton mill in Awati County said that 17500 tons of cotton were processed in their factory this year, including 6500 tons of long staple cotton and 11000 tons of fine cotton. Up to now, each has sold 4000 tons.

according to market Analysis of this year's support for long staple cotton " Prosperity and decline The following factors: first, the output of long staple cotton was reduced from 60 thousand tons to 45 thousand tons in 2014. Especially in 2015, China had no additional quota, except 894 thousand tons 1% tariff quota. As an important substitute, the import of Australian cotton and American cotton was limited; second, capital speculation; in 2015, China's real estate was sluggish, and a lot of funds were taken out to find new investment battlefields. Long staple cotton is favored by hot money, and hoarding prevails. Third, in 2013/14, the price of long staple cotton has gone up and down. Because last year's long staple cotton fell from 36000 yuan / ton to 25000 yuan / ton line, in the past years, Chen cotton was sold off and there was not much available resources in the market.

　　 Long-staple cotton Today, the market is divided. Some people continue to bullish, while others have "repent" and operate cautiously. Now that the number of cotton exports to Hong Kong is rising, and the wait-and-see of textile enterprises and the cooling of the market, the long staple cotton may be really changing, and the market players should be cautious.

In 2015, the cotton planting area in Xinjiang decreased by about 15%, but the area of long staple cotton increased by more than 40%. Recently, a large cotton enterprise in Awati county made a planting intention survey: in 2014, the county cotton area of about 1 million 540 thousand mu, this year plan to reduce 310 thousand mu, reduce 20%. The reduced area is all fine wool cotton, and the planting area of long staple cotton will increase to about 800 thousand mu. In addition, most of the cotton growers in the new areas such as Akesu and Sha ya have been replanted with long staple cotton.

The market forecast the production of long staple cotton in Xinjiang in 2015 or over 70 thousand tons, up 55.5% from 45 thousand tons in 2014. In 2013-2014 years, China's long staple cotton consumption is only 7.5-8 million tons. If output reaches 70 thousand tons, plus last year's inventory and imports of long staple cotton, there will be ample supply in 2015.

"Everybody is very hesitant now, the funds that hype also seem to be very indecision." A ginning factory owner said that due to the substantial increase in the production of long staple cotton next year, it has become a "stumbling block" in the current long staple cotton boom.