Seed Cotton Prices Continue To Rise Again Squeezing Profit Margins

Recently, domestic cotton undulation has aroused some concerns in the market.

Xinjiang pick cotton "double 29", "double 30" platform delivery price 16000-16200 yuan / ton, machine picked cotton "double 28" price 15300-15400 yuan / ton, keep stable.

However, according to some manufacturers, recently, many buyers in the mainland only pay part of the loan, and most of the remaining accounts have 20-30 days. If the seller insists on cash delivery, the paction can not be carried out.

This not only increases the seller's risk of selling cotton, but also increases the pressure of the seller's capital.

In addition, according to cotton traders, the cost of freight pportation to Akesu has increased by 3-5%, for example, Akesu to Shandong this week rose to 1020-1050 yuan / ton, up 50-70 yuan / ton.

In the background of lint's steady and dark fall, seed cotton prices continue to rise, squeezing the profit margins of enterprises again.

On the 9 day, the purchase price of seed cotton in Akesu area was 7.2-7.3 yuan / kg, and the seed cotton price of long staple cotton was 8.0-8.1 yuan / kg (lint 32%, moisture regain 10%).

According to the conversion of enterprises, the cost of "double 29" in Xinjiang cotton is 16100-16300 yuan per ton, and the cost of 137 grade long staple cotton is 20700-20900 yuan per ton. The cost and sales are basically flat or slightly higher than the selling price, and the ginning plant is in a state of loss or warranty.

Right now,

The spot price of real estate is 3128 yuan, 16000 yuan / ton, and the price of 3 grade small package cotton is 14500-15100 yuan / ton, all of which remain stable.

"Cotton is still going up and down in the near future."

9, a market source said that this year cotton production cut is a foregone conclusion, the recent domestic yarn prices continue to rise.

As of 9, a factory in Shandong Pu nuclear 32S, 40S prices were 22600 yuan / ton, 24200 yuan / ton, compared with the beginning of this week rose 300 yuan / ton.

According to the feedback from enterprises, recently, some textile enterprises in the the Yellow River River Valley and the Yangtze River Valley continue to increase the price of cotton yarn by 200-300 yuan / ton.

Moreover, as the Spring Festival draws near, the willingness of the enterprises to make stock is enhanced, and the sales of cotton yarn are also smooth.

In addition, the accelerated depreciation of the RMB, import yarn price advantage.

It is good for domestic yarn.

However, due to many factors in the market, the cotton price is not expected to rise before the Spring Festival.

In the 20 years from 97/98 to 16/17, the world

The sowing area is basically wandering in an interval (2949-3577 hectares).

The most recent peak occurred in 11/12, reaching 35 million 770 thousand hectares, the lowest in 16/17, 29 million 490 thousand hectares, with a drop of 17.5%.

This year, the sowing area of cotton is at this low level.

There are two main reasons: the bear market in the early years, and some of the demand being filled by substitutes.

Obviously, if the market outlook tends to rise, then the price rebound will drive the enthusiasm of the global cotton planting, and the area will fluctuate naturally to the upper reaches of the interval, but there will be no room for growth.

From the perspective of historical rule and experience, when the stock reaches the extreme value and turns to the top, the market will also show a bottoming up and a bull market.

The resumption of Zheng cotton futures since March of this year is precisely the recurrence of this rule.

Inventory decline year by year, will inevitably lead to global supply and demand tension year by year, also accompanied by the continuous rise of the cotton market.

That is to say, cotton will take on a bull market in the next 3-5 years.

For more information, please pay attention to the world clothing shoes and hats net report.