Cottonseed Prices Rose Strongly, Ginning Factory Profits Increased

Seed cotton harvest has been ending this year. Only a few cotton farmers still have a surplus. Because cotton subsidies in the mainland do not have a definite time to sell and the subsidy is less than that in Xinjiang, cotton farmers are not eager to sell cotton seeds after harvest, but sell according to the market trend.

According to past years, individual cotton farmers in the mainland even retained seed cotton to 4 and May the following year. After entering winter, the color level of the tail flower and other indicators were reduced by frost, rain and snow, and seed cotton prices also declined slightly. Therefore, the recent harvesting cost of ginning plants has declined, and processing profit has increased. However, considering that the sale price of the corresponding low grade lint will also be greatly reduced, the cotton mill will prefer the price of cottonseed.

In recent years, linseed prices have stabilized, but cottonseed prices have gone out of a strong surge. According to feedback from cotton related enterprises, the mainstream price of Xinjiang 3128 class machine picked cotton is stable at 13100-13300 yuan / ton, and the mainstream price of hand picking cotton storehouse is stable at 13200-13500 yuan / ton.

According to statistics, the price of wool and cotton seeds in Akesu area is 2.05-2.06 yuan / kg, which was about 1.98 yuan / kg last week. The price of cotton seed in Shihezi in North Xinjiang was 1.90-1.92 yuan / kg, which was more than 1.88-1.89 yuan / kg last week.

Since November, cotton seed prices have been suppressed due to the strong suppression of cottonseed downstream enterprises. However, as the enterprises represented by Northern Xinjiang have gradually finished processing, the cottonseed products are hard to find, making the price mentality of the ginning plant again enhanced, and the bargaining power of the sellers is resolute in the background of cotton seed reduction with cotton production this year. According to feedback from a head of a cotton mill, cottonseed prices rose 0.1 yuan / kg, and lint profit increased by 150 yuan / ton. In the near future, the cost of seed cotton is fixed, the price of lint is relatively stable, and the price of cottonseed will increase.

This year, the purchase amount of seed cotton in some cotton ginning plants in Xinjiang is reduced compared with that of last year, and some individual ginning plants in Northern Xinjiang have finished processing recently. Most of the enterprises will finish processing before and after new year's day, and the southern Xinjiang area will continue until after the spring Festival. However, because the downstream demand is not ideal and the market price is not high, it is hoped that a substantial replenishment of the downstream will be lost before the Spring Festival. Some cotton producers will retain some of the high index spot for sale after the Spring Festival. The profits of short-term cotton ginning mills have increased, but it remains to be seen whether enterprises can promptly digest lint in order to win profits. Therefore, it is recommended that the ginning factory combine with the actual market situation, lock in profits in time, and make reasonable plans for purchase and sale.