Cotton And Hemp Business Mode Change, Spot Inventory Pressure Greater

In August 28th, the staff of the national cotton market monitoring system continued to carry out research in Northern Xinjiang, and visited the local cotton and linen enterprises and futures delivery repository of local corps to understand the current cotton market management situation.

In 2018, the cotton and hemp enterprises of the northern Xinjiang Corps began to divide the fields according to the requirements of the corps reform, and continued to deepen reforms on the eve of the cotton year in 2019/2020. In order to better avoid the new market risks, several corps of cotton and hemp companies in Northern Xinjiang withdrew from the market this year, and the company no longer proceeded independently. They sold their subordinate cotton ginning plants to carry out external contractual lease and obtained stable and objective rental income.

Subsequently, the research team came to the largest cotton distributing area in Northern Xinjiang, Kuitun, and visited a local futures delivery warehouse. According to the person in charge of the enterprise, there were 7 cotton warehouses in the region, of which 2 were futures delivery warehouses. The total storage capacity of the 7 reservoirs can hold nearly 3 million tons of lint at most, and the number of cotton lint in each warehouse has increased substantially compared with the same period in previous years. The warehouse owner said that storage capacity can store hundreds of thousands of tons of cotton. Up to now, there are still 96 thousand tons of lint waiting for sale, including 70 thousand tons of warehouse cotton and 26 thousand tons of commercial cotton. In the 6 and July of the past year, Curie was empty, and it was very different this year. Now there is a lot of lint accumulation in the Treasury. There are also a lot of lint stock in the surrounding areas and other warehouses in the territory.

It is understood that at present, the conservative estimate of Xinjiang still has 130-140 tons of cotton for sale. Warehouse enterprises generally hope that cotton enterprises and traders will seize sales and make room as early as possible so as to smooth the storage of new lint after listing.