Multiple Negative Impact On Cotton Prices Or Continue Low

Recently, the cotton market in Hengshui District of Hebei was deserted, and the sale of cotton was basically stagnant. Even the sale of seed cotton was in a stalemate. Many ginning factories say that most enterprises are in a dilemma because of the superposition of market profits.

As of December 3rd, the purchase price of seed cotton fell slightly in Hengshui, Hebei. On the same day, the mainstream purchase price of cotton seed in Hengshui area was 3.0-3.1 yuan / jin (40% of lint, 12% of moisture regain), a drop of 0.05 yuan / Jin line compared with the highest purchase price of 3.15 yuan / Jin last Friday. Some 200 types of cotton ginning plants also lowered the purchase price of seed cotton by 0.05 yuan / kg. On the 3 day, Zhang 200, the head of a small 200 plant, said that at present, the factory is mainly buying flowers, and the mainstream price level is 2.85-3.05 yuan / Jin line. Compared with the 400 type ginning factory, the price is 0.05-0.1 yuan / Jin.

Talk about the reasons for the decline of seed cotton: first, the lint is difficult to sell, and the inventory of the ginning plant is rising, and the purchase intention is down. On the 3 day, a 400 type ginning factory indicated that the price of lint today is 13000-13100 yuan / ton, and the price of cotton lint with excellent quality is only about 13400 yuan / ton, maintaining a weak and stable position. However, because the downstream manufacturers are negative, the lint inventory of the plant has increased to more than 170 tons, which can only reduce the volume of the purchase. Second, cottonseed rush down. Recently, cottonseed prices are relatively chaotic. For example, Hebei, Cangzhou and other places cottonseed price 1.16-1.17 yuan / Jin, and Hengshui cotton seed mainstream to the factory price in 1.13-1.15 yuan / kg, compared with the previous week fell 0.02 yuan / Jin. Cottonseed is down, raising the cost of lint. Third, the return of reserve cotton to market is discussed. Although the launch of cotton reserves has been launched since yesterday, the market reaction remains unchanged. Many enterprises said that the market has not improved significantly in recent years, and the acquisition is not enough to pull up the current market. Fourth, Zheng cotton continued to fall. As of November 2nd, the 2001 contract price of zhengmian main contract fell, the highest price was 12775 yuan / ton, the lowest price was 12610 yuan / ton, closing price 12615 yuan / ton, compared with the previous trading day price fell 1.33%, 243020 hands trading volume, 446940 positions.

Affected by the superposition of profits, the ginning factory is in a dilemma. Many 400 type ginning factories indicate that if the purchase continues, on the one hand, the cost will rise, the profit space will be compressed, and the lint market will be in trouble. On the other hand, lint is not sold, inventory is accumulating, liquidity is being occupied in large quantities, and turnover is difficult. If we do not buy it, as a big 400 factory, we will mobilize many people. The cost of light bank interest, machine damage and workers' wages will be a great expense.

There are also 200 types of cotton ginning plants, which say that small cotton is becoming less popular, and sales difficulties have been troubling everyone. Especially in recent years, the yarn market is weak, and the textile mills are still buying and selling real estate cotton. Therefore, it is expected that the purchase of seed cotton and lint sale in Hengshui will continue.

To sum up, influenced by many bad factors, it is expected that the price of seed cotton will fluctuate in the low range in the near future, and the short-term cotton lint will not improve.