Seed Cotton Purchase Market "Cooling" Did Not Stop Signs Of Stabilization

Because the gap between new cotton prices and reserve cotton is large, textile enterprises are hard to accept, and most of them are stocked with stock and low willingness to purchase. They all choose to continue to wait and see.

Cotton enterprises are facing greater pressure. Despite the callback of seed cotton purchase price, it helps to reduce the cost of lint, but the spot price has also declined. Increasing sales intensity is still difficult to deal with.

Last week in most parts of Xinjiang, there was rain and snow, the temperature dropped, cotton harvest progress was slightly affected, and the moisture and impurities of seed cotton increased significantly.

It is understood that since mid October

The overall price of the purchase fell by 0.10-0.15 yuan / kg, and the paction price of the long staple cotton market in the mainland dropped by 200-300 yuan / ton (137 and 237 respectively below 21500 yuan / ton, 20500 yuan / ton). In addition, due to the tight purchasing funds, the proportion of ginning plants that had been cut down and stopped was rising. At present, the purchase price of 32-33% cotton seed cotton (32-33% lint) dropped to 7.55-7.65 yuan / kg (individual ginning plants below 7.50 yuan / kg).

A long staple cotton producer in Awati said that because of the loss of more than 70% of Akesu's long staple cotton enterprises in 2015/16, some cotton enterprises had not yet been "unlocked" until the end of September. Therefore, this year, including the Agricultural Development Bank, credit cooperatives and other commercial banks, the loan support for the long staple cotton ginning factory has been greatly weakened, not only the loan quota has been reduced, but also the manufacturers that obtain credit qualifications have significantly reduced.

In addition, not only has the seed cotton purchase price plunged continuously, but the price of the downstream combed yarn and high count combed yarn has also been callback 300-500 yuan / ton as a whole, and the ginning factory is worried that the reappearance of 2015/16's lint price "all the way down" will lead to the recurrence of the tragedy from "set to deep and even".

The market is "cool down".

On the 23-24 day of October, the purchase price of cotton seed in the southern Xinjiang was 2.40-2.42 yuan / kg (ginning factory pick up price), and the oil factory and the short pile factory offered about 2.45 yuan per kilogram (to the factory), which was basically in a weak and stable state, but there were many sellers and few buyers, and the cotton mill could not lock the cost of long staple cotton in the short term.

Some cotton enterprises said that since late September to early October, the purchase price of 33% garment long staple cotton has reached 8.20-8.30 yuan / kg, so the cost of Kwu PI cotton is currently over 21000 yuan / ton.

It is hoped that the relevant lending banks will increase their support and take advantage of the opportunity of seed cotton falling to 7.50 yuan / kg or even lower to open up the purchase. On the one hand, it can lower the average price of seed cotton purchase price, and solve the problem of "selling cotton difficult" on the other hand.

In late October, the cotton picking progress was more than half. With the large number of seed cotton going on sale, the purchase price dropped, and the price of lint sale also declined. However, the purchasing intention of textile enterprises was still low and the turnover was scarce, and the domestic cotton spot market was in a stalemate.

At present, the Xinjiang class 3129 hand picked cotton price is 7.4-7.7 yuan / kg, machine picked cotton 6.3-6.8 yuan / kg, a decrease of 0.4 yuan / kg compared with the previous week, the price of cottonseed is between 2.5-2.8 yuan / kg, and the sale price of lint is 15500-15800 yuan / ton, which is 300-400 yuan / ton lower than the previous period.

The cost of seed cotton before high price was over 16000 yuan / ton after processing. Now it has been upside down with the spot sale price, and there has been a loss. Some processing enterprises have stopped collecting because of excessive risk or capital turnover.