Exclusive news from China Cotton Network: On September 8, the price of Zheng cotton fell sharply, and the price difference between high and low points was close to more than 700 points. Is a big negative line disrupting the situation? What about the new cotton market that has just started? Since the beginning of the month, enterprises in Hubei, Hebei and other places have begun to purchase seed cotton sporadically. With the increase in the number of cotton fields spun, the overall purchase volume has also increased. However, the sudden drop in futures prices has caused uneasiness in the originally stable market. China Cotton Network Based on the harvest situation in the first-line market, some simple comparisons were made.
, but due to the small quantity on the market and the high reluctance of cotton farmers to sell, they resisted selling cotton at low prices. In the end, most companies failed to adjust prices. In Shandong and Hebei in the Yellow River Basin, the mainstream purchase price was initially at 2.85-3.2 yuan/jin. After Zheng cotton plummeted, some companies lowered the price by 0.05-0.1 yuan/jin, but the problems they faced were basically similar to those in the Yangtze River Basin. Some companies have reported that if they purchase at low prices, they will have to bear higher processing costs if they return to the previous purchase price. Therefore, all they can do is to temporarily not determine the sales price of lint. Overall, the current progress of new cotton harvesting in the Mainland is very slow, mainly due to the large differences in prices between ginners and cotton farmers.
Last weekend (September 6), several companies in Xinjiang opened scales to purchase cotton. However, because the acquisition progress was slower than that in the mainland, the amount purchased was very small and Basically, cotton is picked by hand in the fields. After the sharp drop in futures prices, many companies said that adjusting the acquisition price was of little significance, so most companies steadily promoted acquisitions. In the early stage of scale opening, the purchase price was mostly 5.9-6.2 yuan/kg. However, with the increase in the number of companies opening scales, the high prices in Kuitun and Bachu have risen to 6.5-6.7 yuan/kg in recent days.
During the investigation, most of the acquiring companies said that they are currently only acquiring some orders to satisfy, and their prices are slightly higher than expected. Of course, some companies said that in the initial stage of opening the scale, the listing price will be higher in order to have good luck in the new year. Later, as the listing volume increases, some adjustments will be made. In addition, the similarity between scale enterprises in Xinjiang and mainland China is that most of them are acquired for processing civilian cotton. Because the current price of civilian cotton is higher than the price of spinning cotton, the actual cost is within a controllable range. Based on the national situation, futures prices have plummeted, which has not had much impact on the listing of new cotton for the time being.
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