Cotton Prices Fall, What Should Cotton Do In The Hands Of Cotton Farmers In The Mainland?

Present

The market is short. In February 29th, Zheng cotton's main contract CF1609 also fell below 10000 yuan after the CF1701 contract. The cotton spot price fell all the way along with the continuous turnover of cotton futures and the rapid price drop.

According to the national cotton market monitoring system survey data, as of February 26, 2016, the national cotton sales rate was 93.6%, of which the sale of Xinjiang has ended, the mainland sale rate of 78.7%.

That is to say, there are 21.3% of the mainland.

In the hands of cotton farmers.

It is understood that in the face of the current falling cotton prices, coupled with less seed cotton resources, most enterprises have stopped collecting, and insist on the acquisition of corporate performance is not ideal.

Recently, some enterprises in Shandong have bought about 39% of the lint, about 10% of their moisture content, and three cotton seed with a grade of B above the price of 2.95 yuan / kg. Due to the low purchasing enthusiasm, the seed cotton resources are few, and the daily purchasing amount is not more than 30 thousand Jin.

Cotton enterprises wait-and-see psychology is more serious, dare not rush to buy, expected three years ago white cotton seed cotton purchase price of 2.85 yuan / Jin, after year, the market quotation is 2.90 yuan / Jin, and less than 2.90 yuan / Jin cotton farmers are unwilling to sell, basically in the market without price.

The purchase of seed cotton in other cotton areas is similar.

The cotton price of Shaanxi Dali has calculated an account. At present, the purchase price of local white cotton grade three seed cotton is about 2.7 yuan / kg, which dropped by 0.10-0.15 yuan / Jin compared with the pre holiday period, and the selling price of cottonseed cotton was 1.10-1.13 yuan / Jin in the near future.

The cost has been calculated at 11800-11900 yuan / ton (the processing fee is calculated by 1000 yuan / ton), and the 3128 grade lint has fallen to 12000 yuan / ton, and the futures price is still falling.

At present, cotton farmers have no place to sell cotton in the inland cotton areas that have been stopped.

If cotton prices continue to fall in the late stage, cotton enterprises will not be able to make profits if they buy and process, and which enterprise will buy seed cotton? Can cotton stored in cotton farmers sell at that time? Therefore, it is suggested that cotton and cotton farmers should be sold as soon as possible when the price is right, so that they will not be left at home.