What Is The Decline Of Cotton Planting Area In Xinjiang?

Data show that as of early May, most of Xinjiang

Planting is coming to an end. Most parts of Turpan, Luntai, Akesu and western South Xinjiang have sprout, and the whole spring sowing time is faster than the same period last year, of which 20 million 515 thousand and 800 mu of cotton was planted, an increase of 27.7% over the same period last year.

Ningbo cotton trader Zhang Jiangang told reporters, taking into account the weather factors, estimates

New cotton planting still exists the possibility of replanting, and the final area is increasing or decreasing.

But according to what he knows, the probability of reducing cotton planting area in Xinjiang this year is even greater.

"Although the government implemented the cotton target price policy in Xinjiang to protect the interests of cotton farmers to a greater extent, the decline in seed cotton purchase price, the jump in labor costs, the increase in production material input, and the reduction in government subsidies may still make it impossible for cotton farmers to earn too much money."

Zhang Jiangang said that the income of seed cotton is expected to decrease, and the income of planting other crops is higher. This year, some cotton growers will take the initiative to reduce cotton planting area.

More importantly, Xinjiang's local government plans to reduce cotton planting area by 4 million 665 thousand mu this year, reducing the scale to 15.72% of the total cotton planting area. Meanwhile, the Xinjiang production and Construction Corps plans to reduce the cotton planting area by 1 million mu.

Cotton is a pillar industry in Xinjiang. Why should the local government guide farmers to reduce their planting area? According to a press survey, the local government has realized that the future cotton policy may change. For example, the target price of cotton in Xinjiang this year has been reduced to 19100 yuan from 19800 yuan per ton last year.

In the future, government subsidies for cotton farmers may also decrease. Local governments should guide farmers to grow grain on the land suitable for growing grain, and grow cotton on land suitable for growing cotton, and developing diversified businesses will actually benefit the development of cotton industry.

Zhang Jiangang introduced, in addition to the production area farmers active reduction,

In addition to reducing cotton area, foreign institutions and individual operators will reduce the planting area of cotton in the rented area, or simply discard cotton seeds, which will also lead to a decline in cotton planting area in Xinjiang.

It is understood that due to the increase in rental costs, labor difficulties, subsidies can not be achieved, low cotton prices and other factors, a lot of Xinjiang rental cotton planting institutions and self-employed households in the past two years serious losses.

Shandong Cotton Traders Hu Zhiqiang told reporters that this year in Hebei, Shandong, Hubei, Hunan and other places, there is widespread "cotton fields" to "grain fields" phenomenon, most of the farmers in these traditional cotton planting areas have reduced the cotton planting area.

Reporters visited the market to learn that in 2014, the government implemented the target price policy in Xinjiang, and implemented a policy of 2000 yuan per ton of lint subsidy in the cotton area of the mainland, which led to a decrease in the income of cotton farmers in the mainland compared with previous years.

Many cotton farmers in the mainland do not grow cotton because they do not make money.

It is understood that the important cotton producing area in Dezhou, Shandong, grew more than 2 million 900 thousand mu in 2008, and this year it has dropped to about 500 thousand mu.

The expected reduction of cotton planting area in China is conducive to the rise of cotton prices. In the past month, cotton prices in domestic spot have continued to strengthen.

However, after the surge in April, the current trend of the price of zhengmian and spot cotton has slowed down.

The pressure of cotton supply in the future is still relatively large. At present, the trend of rising price of Chen cotton will change at any time.

Yu Lijuan, a senior analyst at Jinshi futures cotton, appears that although the 1509 contract price of Zheng cotton has risen sharply in recent years under the impetus of capital, the textile consumption in the lower reaches of cotton is still in the doldrums.

Whether the continuation of the rally will depend on the game of late capital, and the 10 million tons of state-owned cotton stocks should not be underestimated. When to sell is worth noting.