Some People Are Happy And Others Are Worried About The Rising Price Of New Cotton

Recently, Xinjiang cotton has been listed one after another, although the overall scale is not large, but the market is booming. According to the recent survey on the purchase of new cotton, it is found that the price is rising rapidly at present, while some cotton enterprises are busy with the intense purchase, some cotton enterprises also express their inner uneasiness.

Due to the fact that most areas of Northern Xinjiang have begun to harvest cotton by machine, some areas have appeared the phenomenon of rush harvest, which has become the focus of the market at present. Before and after September 10, the purchase price of sporadic hand picked cotton in Kuitun, Wusu and other places was 5.8-6.1 yuan / kg, which has now risen to 6.6-6.8 yuan / kg, while the open scale price of machine picked cotton is mostly 5.0 yuan / kg. Recently, the mainstream purchase price has risen to 5.6-5.8 yuan / kg, and some high-quality cotton has been above 6 yuan / kg.

In recent years, hand picking cotton is still the main selling mode in southern Xinjiang, and the average price has also increased by 0.6-0.8 yuan / kg compared with the initial period of weighing. Due to the increase in the proportion of machine picked cotton planting, some enterprises in southern Xinjiang reported that the purchase amount of hand picked cotton was obviously lower than that of the previous year. Some civil cotton production lines could only purchase seed cotton at a high price in order to complete the order, while some enterprises could only purchase seed cotton through cross regional transportation. In addition, the price of seed cotton in some parts of the mainland also rose significantly, and the price of some regions in Hebei Province also rose to 6.6 yuan / kg.

Due to the rapid rise in seed cotton prices, the confidence of cotton farmers has been boosted, and the current price has exceeded the psychological expectations of most cotton farmers. At the same time, due to the phenomenon of rush collection and the strong rise of seed cotton price, some cotton farmers have the psychology of delaying harvest and chasing up sales. For ginners, the price of seed cotton is rising, and the future operational risk is further increased. According to the current purchase price, the cost of new cotton is more than 13000 yuan / ton. If this trend is followed, there will be pressure on both hedging and spot sales due to the lack of competitiveness between the listed cotton and the old cotton. As a result, some cotton ginning enterprises have to wait and wait and delay the weighing time.

At present, the consumption recovery of downstream textile enterprises is still slow, seed cotton price rise is more due to overdraft market expectations, and after the production and processing of new cotton, whether the smooth sales still remains to be observed. Therefore, it is suggested that cotton enterprises plan harvesting rationally to avoid losses caused by operational risks.