2015/16 Cotton Acquisition Profit Came To Light

According to the national cotton market monitoring system, as of mid June, 5 million 57 thousand tons of lint and 4 million 957 thousand tons of lint were sold in the whole country, of which 3 million 576 thousand tons of lint cotton were sold in Xinjiang, accounting for 97.8% of the total output of Xinjiang cotton in 2015/16. Therefore, there is very little cotton storage in the inner and outer ginning enterprises.

For cotton processing enterprises, with the sale of the lint and the recovery of the money, the cotton purchase profit in 2015/16 also came to light.

On the whole, it is estimated that the loss of cotton linen in Akesu, Bachu and Korla will be 300-600 yuan / ton in 2015/16, and the deficit will be less than 800 yuan / ton.

Due to the low yield of the ginning mill this year, the cotton business in the mainland to Xinjiang or the leasing processing line in 2016/17 has been greatly reduced compared with the previous years. Cotton enterprises have lower expectations for the acquisition and processing of cotton in the next year.

A ginning factory in Akesu said that at present, financial personnel are speeding up the collection of bills for railway and highway pport invoices (including freight forwarding fees), warehousing fees, insurance premiums and regulatory fees, on the one hand, accounting for costs and win losses; on the other hand, preparing for the declaration of Xinjiang cotton's 2015/16 pportation allowance.

It is understood that 2015/16 cotton sales in Xinjiang concentrated in the following stages, 9-11 months in 2015 (ginning factory processing, namely, the sale of motor vehicles to the mainland), 1-3 months in 2016 (cotton prices continued to fall, until the lowest in the year), 4-5 months (cotton prices rebounded, cotton enterprises to achieve rapid sales clearance), due to the ginning plants

The gap is larger, sales strategy is different, financing and loan interest rates are different, or some other differences.

Take the hand picked cotton ginning factory in Akesu, southern Xinjiang as an example:

In 2015, sales of lint in 9-11 months, although the profits of the ginning mill continued to decline, there was still a gross profit of 300-500 yuan / ton.

Some enterprises in Henan and Zhejiang reflected in the Xinbao plant or their own ginning factories. In 9 and October, the selling price of 2128 (3128) grade lint in the mainland market was 13300-13700 yuan / ton, and the comprehensive cost of hand picking cotton in Xinjiang was about 13000-13200 yuan / ton (deducting 500 yuan / ton pportation allowance).

Because of the delay in listing, late start and other reasons, the amount of cotton lint is relatively small at this stage, and the loan enterprises such as agricultural development bank and credit cooperatives are generally slow in lending and do not allow motor vehicles to go out of the border.

10%;

In 2016 1-3, cotton enterprises were worried about the amount of purchase, the amount of funds, and the worry about the rotation of cotton reserves. Cotton not only had a large sales volume and the price kept falling, but the loss of the cotton mill was expanded from 200-300 yuan / ton to 1000-1200 yuan / ton.

9890 yuan / ton), the mainland warehouse 3128 hand picked cotton spot paction price also from around 13000 yuan / ton or so down to 11600-11800 yuan / ton, down more than 1000 yuan / ton, cotton market, cotton flower enterprises can be said to be in a state of panic, and the cotton prices are increasing. Under the promotion of the selling and selling mentality and the wanton spread of panic, the cotton price is lower and the cotton business sentiment is plummeting. During this period, some large and medium-sized textile enterprises and traders actively enter the market, low price, and the cotton flower atmosphere inside and outside the warehouse is not warm, but the shipment of lint is very large. Many cotton enterprises in Akesu, Kashi and other places in 2016 1-3 cotton sales reached the 50-70% of the purchase amount. Zheng cotton CF1609 contract fell below 12000 yuan / ton, 11000 yuan / ton, 10000 yuan / ton (annual low point).

In April 2016, in the first ten days of May, with the start of the rebound and the spot price rebound of cotton reserves, Xinjian cotton company accelerated the process of dumping and clearing up the goods. The sales volume of many Xinjiang cotton enterprises reached 30-40%, and the delivery of the corps cotton was also on the fast track.

Beginning in mid April, Zheng cotton and electronic commerce of commodity cotton rose and continued. The CF1609 contract broke even at 11000 yuan / ton, 12000 yuan / ton, 13000 yuan / ton integer mark, and the annual new high was 13450 yuan / ton, but the performance of the spot was rather slow, and the increase was also dragging Zheng cotton's back leg. The 3128 level only reported a 600-800 yuan / ton increase. The pressed feelings of the ginning mills and middlemen were released completely, and the lint turnover rapidly expanded. At the end of May, the cotton enterprises at least 50% or more in the southern Xinjiang were cleared up, and the remaining cotton was also dominated by low quality and low grade scattered batches.

Although most cotton companies did not miss the opportunity to raise cotton prices sharply, the sale of resources was only 20-30% after April because of panic selling in 1-3 months.