Xinjiang: The first batch of subsidies will be paid before the end of April, and processing companies are hedging against rising prices
Recently, the Finance Department of the Xinjiang Autonomous Region fully allocated the first batch of cotton target price subsidy funds (after calculation, the first batch of target price subsidy standards are per 0.8 yuan per kilogram of seed cotton), the fund allocation and redemption progress reporting mechanism will be launched from now on, to monitor the flow of funds in real time, supervise the rapid payment of the first batch of subsidies by various states and cities, and ensure that the subsidy funds are paid in full before April 30, solving the urgent needs of cotton farmers.
It is understood that invoice collection, statistics, publicity and other work will be carried out in the future, and the second batch of cotton target price subsidies in 2022 will be issued as soon as possible. Some cotton areas in Kashgar, Aksu, Kuitun and other places have recently suffered from precipitation and low temperature weather. The soil compaction has made it difficult for cotton to germinate and emerge. Farmers have promptly replanted or resowed the affected cotton fields. The first batch of price subsidies has greatly eased farmers’ financial needs. pressure.
On April 25, all Zheng cotton contracts rebounded strongly. The September contract once again broke through the strong resistance level of 15,000 yuan/ton, and opened the previous high of 15,230 yuan/ton. The long and short competition range returned to 15,000-15,500 yuan/ton. tons, not only the spot basis quotation and fixed price rose accordingly, but also the enthusiasm for Zheng cotton hedging increased, and the registration of warehouse receipts accelerated.
According to the judgment of some cotton companies, the sharp rise in Zheng cotton is related to the low temperature precipitation and dust weather encountered in some cotton areas in Xinjiang, and some cotton planting areas need to be replanted or reseeded. Judging from the survey, current domestic demand orders can still effectively support the price of cottoncotton yarn (some textile companies arrange orders until around late May), and the operating rate of yarn mills remains at a high level , the confidence of the entire industry chain continues to rebound compared with the previous quarter of 2023, but some institutions and cotton-related companies still judge that the rebound momentum of this round of Zheng cotton is insufficient, and it is recommended that cotton processing companies seize hedging on rising prices to avoid the risk of large fluctuations in cotton prices in the future market.
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