The Contradiction Between Supply And Demand Of Cotton Is Outstanding.

At present, the contradiction between supply and demand of major agricultural products is more prominent. The main performance is that domestic prices are significantly higher than the international market, and the stock of state reserves is too large, which brings great pressure to the national financial expenditure, and the corn market is the most obvious.

According to relevant personages, under the background of supply side reform, the pformation of agricultural product market from purchasing and storage policy to implementation target price management is essentially guiding agricultural products from policy pricing to market pricing, while protecting farmers' interests by means of subsidies, which also enables the downstream consumer industry to purchase cheaper raw materials.

Gradually displaced from competition.

As one of the forerunners, it began in 2014.

From the purchase and storage to direct subsidy, Zhengzhou cotton futures price fell from 20000 yuan / ton, and fell to 10000 yuan / ton in the near future.

Market participants interviewed by China Securities Journal predicted that there is a big similarity between the corn market and the cotton market.

The sharp fall in the price of corn, which has been cut down by the reserve price, is exactly the same as that of cotton in the year. If this is the prelude to the initial stage of the long decline of cotton and will follow the cotton steps later, then there may be a big decline in the future corn market.

Related people pointed out that the main problems faced by China's agricultural products market are, on the surface, low price of agricultural products, high production costs, low land returns, low comparative income, but the root causes are the further improvement of agricultural industrial structure and agricultural policies.

At present, although the total supply and demand of agricultural products is balanced,

The situation is more serious. The policy of purchasing and storage has led to a large increase in the stock of agricultural products such as cotton and corn. However, some agricultural products, such as soybeans and sugar, which are relatively deficient in domestic supply and demand, have not been well developed.

Fu Xiaoyan, a researcher at Nanhua futures, believes that the contradiction between supply and demand of major agricultural products is quite prominent at present. It shows that the stock of state reserves is too large, which has brought great pressure to the national financial expenditure.

In 2016, the main producing areas in Northeast China and Inner Mongolia cancelled the temporary storage and changed it into "marketization + subsidy". This is another new policy after the cotton goes to stock. It is expected that the range of varieties of direct subsidy policy will expand in the future.

Sub sectors, corn, cotton and other policy attributes of strong varieties, mainly manifested in high inventory and policy implications; and a higher degree of marketization, such as feed plate, the main problem is supply pressure, and demand is not good.

Zhang Xiangjun, an agricultural product analyst at Beijing mid-term Futures Research Institute, also pointed out that for the domestic sugar market, the main competition is the competition between imported sugar and domestic sugar.

Because of the low cost of imported sugar, even with the additional high tariffs, it has obvious advantages compared with the domestic sugar price.

In addition, due to the large price difference between inside and outside, the smuggling of sugar is also a major concern.

For the cotton market, how to balance the relationship between the huge inventory left behind by history and the protection of domestic cotton industry is an important issue.

Zhang Xiangjun introduced that, in order to stabilize cotton prices for 2012-2013 years, the state almost bought and sold all domestic cotton at a higher price than the market price, while the downstream textile enterprises obtained cheap raw materials and imported large quantities of cotton, which led to the rising stock of national reserve cotton.

Since 2014, the cotton control policy has been changed from state purchase and storage to target price management. The state no longer stores and stores cotton, but sets a target price for cotton. When the market price of cotton is lower than the target price, the price difference is subsidized to cotton farmers.

This has led to a continuous decline in cotton prices in recent years, and cotton planting area has been shrinking.