At the end of August, the Xinjiang Autonomous Region government issued the “Notice on Doing a Good Job in Procuring New Cotton in 2020”, requiring all relevant units in various places to make overall plans for normalized epidemic prevention and control from the perspective of focusing on politics, ensuring stability, and promoting development. Various tasks of new cotton acquisition are carried out to ensure the successful completion of the new cotton acquisition task. After the notice was issued, Xinjiang gradually “unblocked”, and transportation, logistics, and cotton field management guidance were also on track. Recently, individual cotton ginning companies in Xinjiang have begun trial rolling, and the number of companies opening scales and acquisitions in Anhui, Hubei, Hebei and other places in the mainland has gradually increased, and the harvesting and processing of cotton companies have gradually entered a state of “actual combat”.
In early September, some Xinlu early varieties in northern Xinjiang have been sprayed with defoliants. As the number of cotton wadding increases and epidemic control is gradually relaxed, large cotton growers use tractors, drones and other mechanization methods. The equipment accelerates cotton maturation and defoliation. In most areas of southern Xinjiang, due to the use of late-maturing varieties, the time for tucking is relatively delayed, but cotton farmers have begun to recruit manual cotton pickers. Some ginners that have opened scales said that they have purchased a small amount of handmade cotton at a relatively ideal price (6 yuan/kg) to test the operation of the equipment, and will ultimately determine the selling price based on the mainstream market.
As of now, the Autonomous Region Development and Reform Commission and the Corps Development and Reform Commission have released the 2020 cotton target price reform processing enterprises in the autonomous region, including 662 local companies and 185 Corps companies, which marks the full start of cotton processing in the new year. At the same time, in order to help solve the financial shortage of cotton farmers, some corps farms plan to provide interest-free loans to farmers selling seed cotton to achieve mutual benefit.
At present, the number of new cotton products on the market is small, and there are few scale companies. The open scale price of cotton in the mainland is mostly concentrated at 2.8-3.0 yuan/jin. The seed cotton is mostly fourth grade, and the price of a small amount of third-grade cotton is 3.2 yuan/jin. Most enterprises in Xinjiang pay more attention to the open scale price of machine-picked cotton in Northern Xinjiang because of the large quantity and concentrated time on the market, and most of them will be quickly registered as futures warehouse receipts after processing. Therefore, both ginning companies in Xinjiang and investors from outside Xinjiang are turning their attention to the official harvest progress of cotton farmers. According to the survey, around September 15th or the period when machine-picked cotton is concentrated in northern Xinjiang, some cotton merchants have successively arranged to go to Xinjiang to carry out work.
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