China's Cotton Store Sells &Nbsp, New Cotton Price Or Fluctuating Around Purchasing And Storage Price.

September is the first month of the 2011 cotton year, and a large number of new cotton will be listed in October and November. However, most of them are Spinning enterprises With large inventory and no digestion, sales of new cotton are worrying.

In September 8th, the Ministry of economic and trade of the national development and Reform Commission and the Ministry of finance, the Ministry of construction, issued the notice on launching the preliminary plan for the temporary storage and purchase of cotton in 2011 in September 7th (hereinafter referred to as the "notice"). Since the beginning of the 2011 cotton year, the cotton price in the domestic market has been lower than the price of cotton temporary purchase and storage of 19800 yuan / ton announced by the state for 5 consecutive working days. According to the provisions of the reserve plan, it was decided to start the temporary storage and purchase of cotton in 2011 from September 8th.

China First textile net Editor in chief Wang Cheng pointed out that the purchase and storage will support the cotton price and the bottom of the cotton price will be formed.

Cargill Inc's manager of China's cotton market, silver nail, believes that India's cotton price may be lower than the purchase and storage price, which is affected by factors such as the unrestricted export of cotton in the two months after the current year and the debt crisis in the United States and Europe. It is estimated that the price of new cotton will fluctuate in the location of purchase and storage price in Xinjiang.

　 Temporary storage is not restricted by quantity.

In March this year, with the approval of the State Council, the eight departments of the national development and Reform Commission, the Ministry of Finance and the Ministry of agriculture jointly issued the "2011 cotton interim purchase and storage plan". The state set up a temporary cotton storage and storage system. The purpose is to stabilize the market expectations of cotton producers, operators and cotton enterprises, effectively protect the interests of cotton farmers, and prevent cotton production from going up and down because of the cotton price ups and downs, so as to promote the steady development of cotton production.

　
The plan stipulates that when new cotton comes into the market, market price Less than the state's provisional storage and storage price, the central storage cotton company is responsible for open storage and storage. The implementation area is the 13 main cotton producing areas in Xinjiang and other provinces. The cotton delivered to the storage area is produced in 2011 and is certified by certified public surveyor.

The notice requires the China cotton reserve management corporation to issue a notice on the temporary purchase and storage immediately. In accordance with the principle of convenient storage, favorable management and cost saving, it will rationally arrange the collection and storage points, take the situation of storage and purchase in batches and start in batches, and do a good job in collecting and storing related work.

　 Intermediate storage cotton Immediately after the announcement, the collection and storage of the cotton area included 13 provinces (districts and cities), namely, Tianjin, Hebei, Shanxi, Jiangsu, Anhui, Jiangxi, Shandong, Henan, Hubei, Hunan, Hunan, Hunan, and Shaanxi.

China store cotton also said that temporary storage and storage were not restricted by quantity, open storage and purchase, and storage and purchase spanactions were carried out through the national cotton trading market storage and storage system. The storage and purchase spanactions began in September 8, 2011 and ended in March 31, 2012. The spanaction time is 16:00-16:30 per workday. The storage price is 19800 yuan (weight) for the standard grade lint to the warehouse, and the storage price for other grades of lint is calculated according to the grade difference of 3% and the length difference of 1%.

The cotton purchase price of cotton seed reserves should not be lower than the reference price of seed cotton purchase released by China Cotton Association. The storage enterprises that do not implement the reference price of seed cotton will be included in the industry blacklist.

　 Purchase and storage price Bottling up cotton prices

In September 7th, China's cotton price index has dropped to 19502 yuan / ton, a drop of nearly 40% compared to the 31000 yuan / ton of the cotton price peak. The reference price paid by the China Cotton Association in September 6th for the purchase and storage price of seed cotton is 4.345 yuan / kg (the national average), and the reference price of the mainland purchase is slightly lower than that of the Xinjiang area.

According to the analysis of recent cotton growers in Shandong, the cotton growers are still on the waiting list of cotton farmers because they foresee a 4.2-4.3 yuan / Jin purchase price reference. Another Xinjiang cotton manufacturer responsible person suggested that if the seed cotton price is less than 8.5 yuan / kg, will affect cotton growers enthusiasm for cotton planting next year, causing cotton farmers to plant crops such as fruits and trees.

In 2011, the cotton temporary storage price was 19800 yuan per ton of standard grade lint to the warehouse. For example, according to seed cotton percentage 38%, cottonseed price 1 - 1.2 yuan / Jin and reasonable acquisition processing fee calculation, the corresponding reference price of seed cotton purchase is about 4.2 - 4.3 yuan / Jin.

　
The cost of cotton planting in Xinjiang is 1800-2100 yuan / mu this year. According to the average cost of 1900 yuan per mu and 300 kilograms per mu, the breakeven point is 6.33 yuan / kg. According to the calculation of the storage price, the seed cotton price is 8.5-9 yuan / kg, and the profit of cotton growers is 2-2.5 yuan / kg, and the yield per mu is more than 600 yuan.

Wang pointed out that the purchase and storage will support the formation of cotton prices, and the bottom of the cotton price will be formed. However, the stock of the cotton mill is still more, and the inventory products can maintain production for 30 days. Under normal circumstances, it should be on the 15-20 day, indicating that the inventory process of the cotton mill in the middle and lower reaches of the cotton has not been completed, which will weaken the cotton mill's demand for cotton.

Prior to this, China cotton information network research feedback results show that cotton companies sell cotton stocks everywhere, sales are active and urgent. However, the procurement of textile enterprises is not positive, and the phenomenon of cotton unsalable is rather serious.

This year's statistics show that Huafu color spinning (002042, stock bar), Tong Kun shares (601233, stock bar), Jiangsu sunshine (600220, stock bar), Luen Fat shares (002394, stock bar), Shandong Ruyi (002193, stock bar) and other listed companies, raw materials inventory is higher than 100 million yuan. Among them, Huafu color spinning raw material inventory amounted to 790 million yuan; Tong Kun shares had 400 million yuan of raw materials inventory; Jiangsu sunshine raw material inventory also reached 380 million yuan.

On the other hand, China's output of new cotton will reach 730-750 tons this year. Compared with the output of 660-670 tons last year, the output will increase to 900 thousand tons. The export situation of China's textile and garment products has not improved significantly, and cotton prices will rise sharply.

By the end of July, the total inventory of cotton business in the country was 1 million 350 thousand tons, of which 201 thousand of Xinjiang's commercial cotton stocks were. Cotton storage and storage capacity in China is only about 1 million tons this year, and about 6400000 tons of new cotton sold in the market, and 2 million 700 thousand tons in Xinjiang.

The temporary purchase and storage started in September 8th made it unnecessary for cotton farmers to worry that the price of cotton planted would be depressed and lose money. At the same time, the unlimited purchase also limits the bottom line of cotton prices. However, taking into account the need for textile enterprises to digest inventory psychology, the industry believes that cotton prices will not rise.

Cargill Inc, manager of China's cotton market, believes that the purchase and storage price is a strong support for the cotton market in 2011. The increase in cotton planting costs may push cotton prices to a certain extent. However, India's cotton price may be lower than the reserve price after being affected by the cotton export volume in the two months of this year and the debt crisis in the United States and Europe. It is estimated that the price of new cotton in Xinjiang will fluctuate in the location of purchase and storage price.