Cotton Price Rises Sharply "Parallel Goods" Increase, Some Ginning Plants Stop Collecting

In the face of soaring cotton prices, on the evening of October 18, a cotton ginning plant in Kashgar, Xinjiang, decided to stop purchasing.

"Cotton is mixed with water and bricks. This happened when cotton prices were high in 2010, when cotton prices historically reached 33000 yuan / ton." A person in charge of the ginning plant then sent a video to the reporter. In the video, someone drove a tractor to spray water on the cotton to be harvested, and the good cotton became "parallel goods".

Water spray or adulteration

According to the above person in charge, according to the different cotton picking situation, the water injection method is different. Hand picking cotton is to draw water after picking, while in machine picking, the head of cotton picker should be sprayed to prevent the head from friction and fire, and large-scale spraying is to harm downstream businesses. Under normal conditions, the moisture content of hand picked cotton is about 8% - 11%, and that of machine picked cotton is about 10%. The maximum moisture content of machine picked cotton in 2019 is 12% - 15%. At present, the moisture content of cotton purchased is 30% - 40%, even if the water content is reduced, there is also 20% - 30%.

According to the above-mentioned personage, there are more difficult problems encountered by peers, such as mixing bricks, sand and even Gobi stones into cotton when loading. The ginning plant should exclude these adulterants. If the pebbles are not discharged but enter the machine to cause fire, it is very likely to ignite cotton and the loss will be even more severe.

This is one of the reasons why the ginning plant stopped purchasing cotton. Another reason is that the purchase price of seed cotton is too high to be profitable. The price has been inverted in Shenzhen.

At present, the selling price of cotton in Kashgar Prefecture of Xinjiang has reached 8.3-8.4 yuan / kg, and the price of machine picked cotton is 7.1-7.2 yuan / kg. This year, the price difference of cotton in southern Xinjiang and Northern Xinjiang is not small, mainly because of the good weather in southern Xinjiang, high cotton quality, and high yield, farmers' income is considerable.

"This year's acquisition is not smooth. A flower enterprise started to purchase from October 6, but has only purchased more than 1000 tons, far from meeting the demand." He believes that this year's cotton price is ignited by the futures price, and the downstream clothing enterprises do improve. However, the demand of clothing enterprises is mainly high-end cotton, which is just a structural market. The demand for ordinary cotton has not increased.

In fact, the hot cotton market, or because of the early ginning plant rush purchase. Cotton farmers dare to spray water this year, similar to the situation in 2010, because of the shortage of cotton supply, the status of cotton farmers has become strong, and farmers are more reluctant to sell after the price of cotton rises.

As of September 30, the inventory of cotton industry in the warehouse of textile enterprises was 658600 tons, an increase of 53000 tons compared with the end of last month, while the demand of downstream market was obviously improved, and textile enterprises began to replenish the stock of raw materials under the condition of low inventory. According to the statistics of Shanghai international cotton trading center, 70-80% of seed cotton is sold in Northern Xinjiang, and some ginning plants plan to stop collecting recently. The purchase price of machine picked cotton is 6.5-6.8 yuan / kg. The current market news surface, good occupy the top, and with Xinjiang cotton processing enterprises rush to continue.

"Now some of the ginning plants simply stop purchasing. If this situation continues, most of them will stop collecting money." The person in charge of the ginning plant said.

The market is still optimistic

This year is a good harvest year, especially in southern Xinjiang, the cotton price and yield are very considerable, the yield per mu is generally 300-400 kg, and the sales price is 1.5 yuan / kg higher than last year.

On October 19, domestic commodity cotton and cotton yarn futures both strengthened, among which the main cotton contract rose 3.25% to 14935 yuan.

Wang Qianjin, information director of Shanghai international cotton trading center, said that from the perspective of disk positions, Zheng Mian's main force has increased the warehouse position by 150000 hands since the National Day holiday, and the phenomenon of funds entering the market is obvious. "I just came back from Xinjiang two days ago. This year, the purchase price and futures of seed cotton pushed each other up, significantly higher than that of the same period last year. The consumer side situation is relatively complex. Domestic demand has recovered significantly under the influence of the double 11. Foreign demand has also performed very well due to the transfer of orders from India and other countries. However, the sustainability of consumption still needs to be observed."

According to the national cotton market monitoring system, as of October 16, China had sold 3.079 million tons of seed cotton and lint cotton, an increase of 845000 tons on a year-on-year basis, and an increase of 640000 tons compared with the average of the past four years; The total processing lint was 905000 tons, increased by 164000 tons on a year-on-year basis, 149000 tons less than the average of the past four years, and the accumulated sales of lint were 89000 tons, an increase of 24000 tons on a year-on-year basis, and a decrease of 22000 tons compared with the average value of the past four years.