Northern Xinjiang: Takeover Price Exceeded 5 Yuan / Kg Cotton Enterprises To Take Risk Avoidance Measures

Recently, the purchase price of 40% lint seed cotton has been broken through 5 yuan / kg in Kuitun, Jinghe, Shawan, Changji and other places in Northern Xinjiang. A few cotton ginning mills quoted 5.2-5.3 yuan / kilogram (40-41% lint) to attract cotton farmers to sell. Supported by Zheng cotton's rebound, some cotton producing areas in the northern part of Xinjiang are expected to cut production and cotton trade is actively booked, such as warehouse receipt cotton, procurement spot and so on. Some enterprises have increased their prices. In October, the "joint limit" measures formulated by some regions and ginning mills failed.

A cotton trader in Kuitun said that under the impetus of capital, market sentiment and guaranteed profits, it is estimated that the price of 40% lint seed cotton purchase will exceed 5.2 yuan per kilogram. At present, some ginning plants take the following two measures to avoid risks: first, reduce or postpone the purchase, do not catch up, do not rush to buy, the highest price of 40% lint seed cotton is 5.1 yuan / kg; two is to buy only 40% or more lint seed cotton, in general, every raise of a dress score, the purchase price is raised 0.1 yuan / kg, while some ginning plants only increase 0.05-0.08 yuan / kg.