Regional Economy: Xinjiang'S New Cotton Has A High Opening Price. Most Ginning Mills Are Currently Holding A Wait-And-See Attitude

At present, most cotton fields in Xinjiang have completed the application of defoliant. As cotton begins to boll in an all-round way, the vast cotton fields are already snow-white. At present, Xinjiang new season cotton has come on the market sporadically. From the perspective of the opening price, the opening price is slightly higher than the previous market expectations, boosted by the recent sharp rise in international cotton. For example, the opening price of machine picked cotton is 5.5~6.1 yuan/kg, and that of hand picked cotton is 6.9~7.2 yuan/kg.

It is estimated that the average per unit yield of seed cotton in Xinjiang is more than 450 kg, slightly higher than that of last year, mainly due to the good weather conditions during cotton growth. At the same time, under the condition that the cotton planting area in Xinjiang is relatively stable this year, the total cotton output in Xinjiang is expected to increase slightly.

After the purchase price of machine picked cotton rises to 6.5 yuan/kg, the current market price is not very representative. It is expected that the end of September to the first ten days of October will be the peak period for the listing of machine picked cotton. At that time, ginning plants will increase their acquisition efforts, and mainstream prices in the market will appear. It is expected that the purchase price of seed cotton will have a certain upward space due to the impact of macroeconomic recovery at home and abroad.

Due to the recent decline in the expected output of major cotton producing countries in the international market, cotton futures prices in the international market once rose or closed. Boosted by it, by the end of the afternoon of September 24, the futures price of 2501, the main contract of Zheng Mian, had risen by 1000 yuan/ton in 8 trading days.

Most ginning plants are holding a wait-and-see attitude at present, and everyone's desire to snatch up is not too strong. From the downstream market, the demand for 32 and 40 yarns has increased, but the market inventory is still high. Only when the downstream market continues to recover in the later period and textile enterprises are more willing to supplement the stock, can the purchase price of seed cotton be really boosted.

Industry insiders believe that with the Federal Reserve's interest rate reduction and the opening of domestic policy space, the market will be more optimistic about cotton prices.