The Growth Of Long Staple Cotton Seedlings Is Blocked And The Price Fluctuates Little.

5 since the middle ten days of last month, the overall rainfall in Xinjiang has been excessive. Especially in some areas, hail, low temperature and rainfall have led to the emergence of long staple cotton.

Recently, the temperature in Akesu area is still unstable, and the overall growth of cotton seedlings is slightly worse than that of last year. Although cotton growers are carefully planted and managed, the expected yield is still not optimistic. On the 19 day, a cotton grower in Awati County said that the yield of long staple cotton was only 230-240 kg / mu this year. In 2018, the yield of long staple cotton was generally 240-260 kg / mu.

From the market perspective, the price of long staple cotton has not fluctuated in recent years, and the turnover remains low. As of June 19th, the 137 class delivery price was 23200 yuan / ton, and the 237 class delivery price was 22200 yuan / ton, which fluctuated little compared with the previous week. According to the analysis, the first is the gradual marginalization of long staple cotton. Taking Awati as an example, the sown area of 650 thousand mu in 2019 was 190 thousand mu less than that of 840 thousand mu in 2018. Cotton farmers are more willing to choose fine staple cotton due to their efficiency. In addition, many high spinning enterprises use high quality Australian cotton or American cotton instead of long staple cotton due to cost factors. The two is the slump of long staple cotton since May. Affected by the Sino US trade war, Spin Factories stop production and limit production, and spinning enterprises keep the long staple cotton to buy and use, and even use other cotton instead of more common. Three is the long staple cotton cost upside down, traders, cotton enterprises reluctant to sell strong emotions. According to the current price conversion, long staple cotton upside down 1500-2000 yuan / ton, inventory enterprises suffered heavy losses.

In June 17th, the US Trade Representative Office held a hearing on the Levy of $300 billion on Chinese goods. A number of us business representatives spoke against expanding tariffs on Chinese products. This may be good for cotton prices, but it can not be blindly optimistic. Can the hearing or G20 summit bring a turning point for tariff? This will have an important impact on domestic cotton prices including long staple cotton, and China's cotton network will continue to pay attention.