Cotton Prices In 2016/17 Increased Slowly, And Lint Prices Began To Hang Upside Down.

According to the public inspection data released by China Fiber Inspection Bureau, as of 28, there were 4 provinces in 2016 cotton throughout the year, and 146 cotton processing enterprises processed cotton according to the requirements of the cotton quality inspection system reform plan, and carried out notarization inspection. The inspection volume reached 144161 packs and 32688 tons, of which 132041 and 29940 tons were in Xinjiang.

The quality of new flower was higher than that of last year, of which white cotton accounted for 85%, light spot cotton accounted for 14%, yellow dye cotton accounted for 1%, and enterprise quoted price was generally 3.35-3.45 yuan / Jin, lower than cotton farmers' expectation.

In Hebei and Shandong, the picking rate of seed cotton in two provinces is 20-30%, and that of 400 type ginning plants accounts for less than 3%. It is expected that a large scale will be opened after "eleven".

The main cotton producing areas in the Yangtze River region have also started picking and selling. The purchase price of seed cotton is 3.2-3.4 yuan / Jin. The cotton farmers are reluctant to sell in the early stage of pickling, and the proportion of enterprises is low.

Seed cotton purchase prices rose sharply during the 24-25 day period.

More and more cotton farmers' enthusiasm for sale is also high, but after 27 days, due to the fall in cottonseed prices, the increase in processing costs and the embarrassment of cotton enterprises, in this case, seed cotton purchase prices fell slightly.

As the price of lint production and marketing has been upside down, some cotton enterprises began to stop and wait.

Because the purchase price of seed cotton is much higher than that of the ginning mill, the new cotton growth rate in 2016/17 is slow. In addition, the price of the purchase of cottonseed by oil plants and traders has stabilized. Therefore, some ginning enterprises in the southern part of the Yangtze River have gradually reduced or closed since September 25th.

At present, the inverted price of lint is becoming more and more prominent, and cotton enterprises are at high risk.

The purchase price of 7.40 yuan / kg is calculated (40% lint, 13% within water, cottonseed price 2.45-2.50 yuan / kg), 2128 (3128) direct cost is about 15700-15800 yuan / ton (gross weight), plus short turnover, regulatory fee and financial cost, the comprehensive cost of warehouse delivery is at least 16000-16200 yuan / ton.

However, at present, the price of new cotton in Kashi, Akesu and other places in 2016/17 is only 15300-15500 yuan / ton, and the net loss of the cotton mill is 500-700 yuan / ton.

In addition, more than 80% of cotton seeds sold by cotton growers are not sold out in the short term. The price of cottonseed can not be predicted after half a month or a month, so the cost of lint is difficult to estimate, and enterprises dare not make futures hedging.