Xinjiang Cotton Enterprises Are Reluctant To Sell, But Their Profits Are Limited.

Although CF2001 has broken down the 12800 yuan / ton integer mark for nearly half a month, the sale price of the lint sale in the processing industry has been highly stabilized or slightly retracted, and the selling price is very strong. So a large part of the cotton trade enterprises in the mainland have to postpone the purchase or purchase of the new cotton spot or warehouse receipt. Some traders even arrange for the buyers to return to the mainland, seize the price or sell the goods to the consumer areas.

Cotton processing enterprises in Changji, Kuitun and other places in Northern Xinjiang indicated that as of November 25th, the acquisition of seed cotton has ended and processing progress has reached nearly 70%. It is expected that the seed business will be closed before the end of December. From the present lint sale, the actual income of enterprises is not high, which is different from the statistical analysis of some organizations and cotton enterprises.

On the one hand, a large part of the ginning plant in the territory entered the market with the price of 12200 yuan / ton in the CF2001 contract. At present, the disk loss is generally 400-600 yuan / ton. Even after October, Xinjiang cotton spot rose 1000 yuan / ton, and the net profit of the cotton mill was only 400-500 yuan / ton more than delivery.

On the other hand, from 9 to October, some domestic processing enterprises signed contracts for 2019/20 cotton purchase with traders, most of which were 12200-12500 yuan / ton (fixed settlement). As the purchase price of seed cotton continued to rise in mid October, the price of lint fell continuously, and the price of the production and sale of the cotton mill was flat or upside down. Therefore, the enthusiasm for the performance of the cotton mill decreased significantly, and the phenomenon of delayed delivery, reduced purchase volume or even breaking the contract increased significantly.