Anhui Wangjiang: Zheng Cotton Futures Prices Plummeted, Cotton Enterprises Remain Calm.

In November 20th, the market worried that the first phase agreement between China and the United States could not be reached this year, resulting in a sharp fall in the price of ICE futures. On the 21 day, the price of domestic cotton futures fell sharply, and the closing price of the main contract fell by 260 yuan / ton compared with the previous day, and the lowest price was 12580 yuan / ton. The sudden change has made the market regenerate pessimism. But the Wangjiang size ginning plant in Anhui's main cotton producing area has expressed its view that it should not change the purchase price of seed cotton blindly.

Cotton mill does not quickly adjust the purchase price of seed cotton for three main reasons. First, cotton futures price fluctuates greatly, and spot market can not see wind or rain, so it is necessary to stabilize its acquisition strategy; two, it is the best seed cotton quality acquisition period at present, blindly lowering prices will affect seed cotton purchase amount; three, we need to observe a few days to see the price changes in the cotton futures market after several trading days, and make a further arrangement for the cotton and textile spot market to reflect the cotton futures prices.

It is understood that the current size of 3128 gin and ginning 38 kg linen seed cotton purchase price remained at 3.02-3.05 yuan / Jin, the highest seed cotton purchase price reached 3.18 yuan / jin (41 Jin of lint). Dachang seed cotton purchase quantity 5-6 Jin Jin, small factory 2-4 Jin. The price of wool cotton seed has been stable for 1.10-1.11 yuan / Jin for a long time. The sale price of grade 3128 lint is also stable at 13000-13250 yuan / ton (net weight pick up price) interval. The cotton market remained stable and was not affected by the sharp drop in futures prices.