According to relevant cotton industry news, there has been a contrast in the market prices of cotton seeds and cotton by-products recently. From the stable and fluctuating prices of seed cotton and cotton by-products in late autumn and early winter, the current quotations of cotton seeds have fallen, while the prices of cotton by-products have remained high. Taking the cotton market in the inland Yangtze River Basin as an example, the recent price of third-grade cotton seeds is 2.30-2.50 yuan/kg. However, between October and November, the factory-to-factory price of this type of new seeds was firm at 2.40-2.80 yuan/kg. Market quotations in some areas of Shandong (such as Xiajin) where cotton by-products are actively traded are even higher. However, the quotations of cotton by-products are still high. For example, among feed processing enterprises in the coastal breeding areas with developed cotton by-product circulation in northern Jiangsu Province, the quotations of cotton meal and rapeseed meal are hovering at 3,500 yuan/ton; cotton oil is 6,300-6,500 yuan/ton. Yuan/ton; the advantage category of short cashmere is as high as 6,000 yuan/ton. After the price of cottonseed fell back in winter, the prices of major cottonseed processing derivatives did not change.
According to analysis by industry insiders, the reasons for the price reduction of cottonseed in winter are actually very simple. First, due to the fact that the international and domestic cotton industry production, sales and trade have not fundamentally reversed, the industry’s pricing is based on purchase and sales. Balance and interest protection are the main basis, and “selecting lower prices” and “cautiously increasing prices” are the basic motivations for psychological stability; secondly, with the decline of cotton spot prices, it is natural for cotton seed prices to fall. Cotton fiber and cotton seeds As a combination of cotton, prices rise and fall, and the fate is the same, unlike the market conditions of cotton and cotton yarn. Third, the quality of cotton seeds processed from mature cotton harvested after winter has dropped significantly, causing the value of cotton seeds to decline. Therefore, it is inevitable that the price of seed cotton and cottonseed will decrease from late autumn to early winter.
Cotton by-products are in a critical period for procurement, supply and stocking in winter. For example, in the edible oil market, October to December is the period for production and processing, and the market is stocking up for the Spring Festival market. At this time, cottonseed is the main oil-extracting variety, and the price is unlikely to fall. Another example is cotton meal, which is the time when feed companies organize their entry into the market in winter. The warehouse is prepared for the critical period of early spring start-up. Taking advantage of the sufficient supply of meal from the upstream and the low season of hibernation for feed demand from the downstream, most feed mills that mainly consume meal and miscellaneous grains purchase major and auxiliary raw materials such as meal and grain in large quantities, and their circulation Peak season is also the day when prices are strong.
Industry insiders believe that with the gradual arrival of deep winter and spring not far away, the feed market will also purchase large quantities of cotton auxiliary raw materials in the better period and will be put into storage. After New Year’s Day, cotton seeds and cotton by-products from seed cotton processing enter the market in winter. Together with the decline in the peak purchase period of cotton by-products, the cotton by-product market will usually experience an expected correction. Of course, “real-time market conditions and real-time scenarios”, in cotton by-products Under the new and unpredictable situation of the market, the real trend of the cotton market, just like the ever-changing cotton market, can only be observed and grasped by the majority of colleagues in the industry. </p
