New Cotton Goes On The Market Before Going On The Market, The National Cotton Store Goes Out Orderly.

Because of the low comparative benefits of cotton seed and the time consuming, labor and effort of planting cotton, and the lack of cotton seed subsidies, the cotton planting area in the mainland has declined a lot this year. For example, the cotton planting area in Hebei province is about 4 million 300 thousand mu, 1 million 860 thousand mu less than last year, and the decrease is 30%.

The market is expected to have a greater probability of falling cotton production this year.

At the same time, the demand will be expected to recover, which is beneficial to the digestion of the stock of the country's cotton.

The specific plan of the national cotton mill is expected to be announced in late June.

The inventory digestion of state cotton stocks will be carried out in an orderly way with asymmetric rotation, multiple rounds of production, less rotation, and first round and round out, and there will be dynamic adjustment and improvement in the quality of inventory structure. The inventory of national cotton stocks will be digested to a reasonable level in a certain number of years.

Huang Junfei, assistant general manager of Hubei Yinfeng Industrial Group, told reporters that the contents of the speech made by the relevant department heads at the 2015 China International Cotton Conference were quite different from the previous market expectations.

Pre market rumors that the national cotton auction price is higher, while the market is also expected to sell the national cotton store is synchronized with the purchase and storage of Xinjiang cotton.

If the national cotton store is carried out in 7 - August this year

And take the way of going on the market before the listing of new cotton, and take the measures that are bigger than the first and the first out after the sale and the quantity and time of the rounds, then the domestic cotton market will be greatly impacted in the process of going out of stock.

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The beginning of the sell-off, equivalent to the top of the domestic cotton price, is determined, and the market supply gap will no longer exist.

Huang Junfei said.

Since last year, the government has implemented the target price policy in Xinjiang cotton region, and implemented Cotton Subsidy Policy in the cotton area of the mainland.

Although this has checked the momentum of the continuous increase of state cotton stocks, the accumulated cotton inventory in the Tuo city for many years is still huge, and some countries store cotton.

Deviation.

In the face of huge inventory of state-owned cotton and facing the financial burden resulting from it, it is imminent to reserve stocks.

However, from the analysis of the domestic cotton market situation, the process of storage and removal of stored cotton will not be smooth sailing.

In recent years, the pformation and upgrading of China's textile industry has been accelerated, the production of low-end yarns has been reduced, the production of medium and high end yarn has increased, and higher requirements for cotton quality have been put forward, while the quality of national cotton stores is not very good. Some of the national cotton stores do not meet the market demand standards.

In this case, the national cotton store wants to speed up the inventory, unless the sale price is promoted.

At present, high quality cotton that meets the procurement requirements of textile enterprises in China is still in short supply.

In addition, under the guidance of the target price policy, the linkage between domestic and foreign cotton markets is strengthened, and the number of low-priced cotton yarn and cotton entering the domestic market is larger. The market is expected to start selling after the national cotton store, and the price difference of different quality cotton will widen, and the market differentiation will be more serious.