New Cotton Price Difficult To Implement, Enterprise Cost Is Still Increasing

Since the listing of cotton in Xinjiang, the price of new cotton has been rising all the way. Recently, due to the weakness of Zheng cotton futures, the rising momentum has been curbed to some extent, and the prices in some regions have been slightly lowered. However, many cotton ginning enterprises say that the cotton processing costs are still increasing. Seed cotton prices have not continued to rise, why will the cost increase?

In recent two days, Zheng cotton futures fluctuated more frequently, the main cf2101 contract continued to fluctuate in the range of 12700-12850 yuan / ton. Taking into account the National Day holiday and other factors, investors' risk aversion mentality was significantly enhanced. After the 6 yuan / kg mark of machine picked cotton in Xinjiang last week, the center of gravity has dropped slightly recently, and the mainstream transaction price in some areas is between 5.8 yuan / kg and 5.9 yuan / kg. According to cost accounting, seed cotton prices have declined, and lint processing costs should also have decreased, but there are still a large number of cotton enterprises said that is not the case.

According to the survey, there are two main reasons: first, in general, cotton processing costs will remove cotton ginning mill cottonseed income. Recently, the purchase price of cotton ginning enterprises has been high, and the cost of cotton ginning enterprises has been reduced to a certain extent. According to the feedback from some enterprises in Northern Xinjiang, cotton seeds in Xinjiang decreased from 2.4 yuan / kg to 2.15 yuan / kg in recent days. At the same time, the cotton seed output has a certain time lag because the cotton ginning enterprises purchase a certain amount of seed cotton before processing. Therefore, if the seed cotton above 6 yuan / kg is processed at the early stage, and then the cottonseed is sold smoothly, the actual lint processing cost will be much higher than that estimated by the current market, which is also an important reason why there is a large gap in the accounting costs of so many market parties. 2、 According to feedback from some operators, this year, the new production lines of Xinjiang production and Construction Corps have reached more than 70. Therefore, under the situation of more monks and fewer employees, some enterprises have higher actual purchase prices in the process of competing for seed cotton resources. Now it is difficult to reach an agreement on the price reduction of seed cotton, which makes some cotton enterprises still have the phenomenon of high price acquisition in order to complete the established acquisition target. As a result, the situation of light down and dark rise is caused.

At present, the domestic cotton public inspection has been officially opened, although a small number of cotton in Xinjiang has completed the public inspection, but cotton enterprises have not implemented the delivery price. Of course, the main reason is that the processing cost is too high, which is inversely linked with the current futures price, so it is difficult to realize the futures hedging successfully. Therefore, some market people who have already gone to Xinjiang to purchase cotton have also said that it is helpless to price the cotton.