Cotton Prices In Xinjiang Fell 30% A Year, Cotton Companies Cautiously Wait And See

This year is the first year of the national trial of cotton price target reform in Xinjiang. Cotton prices in Xinjiang are undergoing reform pains, and prices have fallen below the cost line of cotton farmers.

As a domestic cotton price vane, the fall of cotton prices in Xinjiang is bringing the overall decline in domestic cotton prices.

Yesterday (October 8th), reporters from Xinjiang

Zhang Chunyou learned that at present, the price of each kilogram of seed cotton is about 5.6 yuan, and the price was 9 yuan per kilogram last year, and the price dropped by more than 30%, far below the cost price.

According to China

According to information network data, the lint price of Xinjiang grade 4128 dropped from 21000 yuan in October last year to 13800 yuan in September 30th this year, a drop of over 30%.

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In previous years, October was the peak season for cotton trade, but this year the cotton market started slowly.

Sun Liwu, an information cotton analyst at Zhuo Chuang, said that at present, there were only 260 enterprises to buy Cotton in scale, and 1300 cotton enterprises started to purchase in the same period last year, compared with more than 2500 cotton enterprises with acquired qualifications in the country, the scale of this year's scale is only 11.8%.

It is expected that cotton prices will continue to fall, which is an important reason for the poor sales of cotton market.

Since 2011, China has implemented the "market support" policy for temporary storage and storage of cotton, which has stabilized the domestic cotton purchase price. However, as the international market price continues to fall, the cost of cotton imports is significantly lower than the temporary purchase and storage price.

In recent years, domestic and foreign cotton prices vary widely.

In early 2014, the state started the pilot project of cotton target price reform in Xinjiang, and abolished the temporary purchase and storage policy.

After the temporary purchase and storage policy was abolished, domestic cotton prices began to link up with international cotton and entered the downstream channel.

Zhang Chunyou said that at present, the price of each kilogram of seed cotton is about 5.6 yuan, and the price was 9 yuan per kilogram last year, and the price dropped by more than 30%.

It is far below the cost price.

Zhang Chunyou said that because of loan repayment, workers' wages must be paid, though the price is low, and cotton must still be sold, but so many losses make cotton growers very "panic".

Ma Wenfeng, an agricultural consultancy analyst, argues that banks have tightened credit, and cotton companies have no money to buy them, which is also the cause of falling cotton prices.

Due to the drop in cotton prices and the low cotton price in Xinjiang, there is a cautious look at the demand for cotton shops.

On the official website of the Central Cotton store, the reporters found that in September, 4 textile enterprises collectively broke their contracts and abandoned the cotton that they had captured more than 1000 tons.