Cotton Target Price In Xinjiang Is Higher Than Expected In 2016, And Spot Stabilization Will Rebound.

Recently, the national development and Reform Commission issued

The level is 18600 yuan / ton per ton, down 1200 yuan / ton and 500 yuan / ton respectively compared with 2014 and 2015, in 2015/16.

Continue to go down, at home and abroad

With the price gap shrinking and even the regional integration, the target price of 18600 yuan / ton is much higher than the spot price of cotton, which is higher than the expectations of the market parties, reflecting the state's intention to protect the basic income of farmers.

Farmers in Akesu, Kashi and other places in Xinjiang believe that the price of agricultural fertilizer, plastic film, cotton seed and other agricultural products in 2016 dropped slightly compared with 2014 and 2015. The total input of the Mu decreased slightly, and the target price was reduced by 500 yuan per ton in 2016.

Bachu, Sha ya, Yuli and other main cotton producing areas due to weather reasons in 2015, the yield per unit area decreased considerably. Farmers' cotton production and marketing were flat or even a slight loss. There was a strong desire to adjust the planting structure, reduce cotton production and expand the area of long staple cotton, but overall, there was a target price of 18600 yuan / ton, and corn and other grain crops were low. In addition, with the shortage of water resources in southern Xinjiang, it is estimated that the reduction rate of cotton seed will not exceed 5% in 2016.

Since March 17th, Zheng cotton and commodity cotton electronic matching have stabilized and rebounded. The price of zhengmian CF1609 contract once exceeded 10500 yuan / ton, up nearly 450 yuan / ton.

On the one hand, the arrival time of the national cotton storage is extended to the middle of 4 months, and the demand for short-term cotton mills and middlemen replenishment is supported by electronic disk and spot. On the other hand, in 2016, the target price of cotton in Xinjiang was 18600 yuan / ton, which was higher than that of the research institutes, media companies and companies, and it was good for CF1609, CF1701 and other far month contracts.

In March 20th, the low level of domestic cotton spot market stabilized, and the differences between buyers and sellers in the cotton price trend increased. 2128B (2129B) and 2128C2 (3128C2) quotations for gross inspection of gross domestic product of the inland Treasury were maintained at 12200-12500 yuan / ton and 11900-12100 yuan / ton, and cotton enterprises and operators hoped that spot quotes would gradually rebound with electronic disk.