Cotton Market Focus Shifted From Seed Cotton Purchase To Lint Sales

In December, most cotton picking in Xinjiang was basically over, and seed cotton acquisition was coming to an end. As of November 30, 2016, the picking rate in Xinjiang was 96.97%, 1.43 percentage points slower than last year, and the sales volume reached 3 million 390 thousand tons, accounting for 92.07% of the total output. The progress was 0.23 percentage points slower than last year.

The machine picked cotton in northern Xinjiang has been basically closed down. Only a small number of processing enterprises are still acquiring in some parts of the country. Picking up cotton in southern Xinjiang is slow this year, and there are still some high grade mid high flowers listed, most of the processing enterprises are still open to purchase.

The international cotton market prices continue to fall as a result of US interest rate hikes and global cotton concentration.

The price of seed cotton in Awati county is generally 7.95-8.0 yuan / kg, and the seed cotton price in Sha Ya county is low. The purchase price of 32% lint of long staple cotton is 7.65-7.7 yuan / kg, but the price center also increased by 0.05-0.1 yuan / kg compared with last Friday.

Xinjiang new cotton purchase price 3129 class machine picked cotton in 6.3-6.5 yuan / kg, hand picked cotton in 7.2-7.45 yuan / kg.

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Picking and buying are coming to an end, and the focus of the market has shifted from seed cotton purchase to lint sales.

On the other hand, a few stocks of raw materials are available for next year, and they are not in a hurry to purchase. Most of the textile enterprises are difficult because of busy season, insufficient orders, new cotton prices higher than psychological expectations and backward pmission. Cotton is still mainly consumed with cotton reserves.

Cotton enterprises generally intensify sales of lint and strive for clearance and full recovery before the early March of the reserve cotton rotation. Some of the enterprises mainly funded by themselves and their own funds are not in a hurry to sell, insisting that there is a gap in the domestic high-grade cotton, and cotton prices will rise next year.

Analysis of the reasons for the rise: first, the cotton ginning factory scrambled for resources.

As of December 6th, there were not many remaining cotton ginning plants in Akesu, but most of them were strong and well capitalized.

Due to the lack of seed cotton in recent market and some enterprises rush to harvest, a company will receive 10-12 kg of seed cotton this Sunday.

Second, cottonseed prices continue to rise.

To 6, cotton seed price in Akesu, Sha Ya and other places 2.5-2.55 yuan / kg, local price reached 2.6 yuan / kg, up 0.05-0.07 yuan / kg compared with last Friday.

In addition, according to the feedback from the ginning factory, cotton seeds were recently introduced to Xinjiang.

The number of squeezed oil factories in the mainland has increased, and many cotton seeds have not been processed before they are processed.

While seed cotton is rising, some cotton ginning mills try to increase the price of lint slightly.

"Just trying to raise, especially for cotton with high quality, see the market reaction."

The person in charge of the enterprise said that the sales of long staple cotton in the near future were not satisfactory. They could not pfer the more than 2000 tons of long staple cotton to Shandong, Jiangsu, Zhejiang and Henan for sale.

As of 6 days, the factory in Shandong warehouse long staple cotton grade 137 sales price of 21500-21600 yuan / ton, up 200 yuan / ton.

Enterprises say that after the price rises, the downstream manufacturers are not very sure. Some enterprises and middlemen who have the intention to purchase also beat the drum.

However, some ginning plants and some middlemen believe that the long term staple cotton is still more profitable than ever, and prices are likely to rise and fall.

The 137 grade cost of long staple cotton has exceeded 20800 yuan / ton. In Akesu platform pickup, the ginning plant basically has no profit.

Especially in the process of seed cotton rising, the ginning factory has a strong desire for price.

The problem of long staple cotton pportation is relatively large, and the supply of long staple cotton in the mainland market is still insufficient.

At present, the price of long staple cotton and fine staple cotton is around 5000 yuan / ton, and the low price difference level gives long staple cotton room to go up.

For more information, please pay attention to the world clothing shoes and hats net report.