Great Changes Have Taken Place In The Circulation Of Cotton Market.

The jump of cotton prices has made the national cotton processing and circulation enterprises and textile enterprises greatly surprised.

Since last year, cotton processing and circulation enterprises have generally taken a blank view of the price trend of cotton market this year. In order to prevent and control risks, they sold their cotton in the early days.

In recent years, textile enterprises have become accustomed to "buying and using", basically not storing what kind of cotton. After the change of cotton market in April this year, they were caught unprepared.

Some textile enterprises along the coast have temporarily suspended joint operations to stop cotton prices from skyrocketing.

Xinjiang has made remarkable progress in developing textile industry in recent years. However, because cotton was sold to the mainland ahead of time, the cotton spinning within the territory was urgent, and some enterprises had to adjust cotton from the mainland.

at home and abroad

Price changes fluctuate periodically.

The latest round of price spikes appeared in 2010, when it was more than 30 thousand yuan / ton, and then continued to fall. It was about 20 thousand yuan / ton in 2011 to 2013, about 14 thousand yuan / ton in 2014, and 13 thousand yuan / ton in 2015.

Since April this year, the domestic spot market and futures market have seen double rise in cotton prices. The spot market has risen to about 14 thousand yuan / ton, and the futures market has been trading several times, breaking through 15 thousand yuan / ton once.

After April, the state began auctioning reserve cotton, and the auction price was less than 2 to 30 thousand tons per day, and the average price was 13 thousand and 400 yuan / ton in July 1st (3128 yuan was 14 thousand and 300 yuan / ton).

In July, though entering the textile off-season, most textile enterprises felt great pressure on the continuous rise of cotton prices.

After China

In coordination with the association, the state decided to extend the auction period of cotton reserves in 2016 to September 30th.

With the increase in the number of cotton auction and the extension of time, the price of cotton has skyrocketed and dropped.

It is estimated that the price of new cotton will be 1.4 to 15 thousand yuan / ton before and after October this year.

First of all, it reflects that the price operation of China's cotton market is returning from normal to normal, and the market has played a decisive role in the allocation of resources.

In recent three years, the price of domestic and foreign cotton market has been integrated. Under the action of market mechanism, domestic cotton market price has been over falling, and price recovery is an inevitable trend.

The futures market is the most sensitive place for price discovery. The reaction is very fast. Speculative funds poured into the stock market in a short period of time and quickly raised the price.

Second, it also reflects the shortage of cotton production in China.

The complexity of the changes and the failure of the market mechanism to the benefit distribution of farmers objectively require the state to take measures.

Last year, China's cotton production has basically entered the market consumption, and the gap between production and demand is very large. The estimated gap is about 1/3. However, cotton sales prices of cotton growers in China last year were the lowest in recent years, and the state's responsibility to establish a market loss subsidy system is unshirkable.

Thirdly, it reflects the defects of the cotton temporary purchase and storage policy implemented in our country in the past few years. This policy implementation has formed an interest group objectively. Warehousing people are unwilling to go out of the Treasury and even do everything possible to slow down the storage, so we must carry out reform and improvement.