Cotton Purchase And Storage Price Was Raised By 600 Yuan / Ton &Nbsp; &Nbsp; Textile Stocks Were All Popular.

At present, though it is still unpredictable.

In March 1st, the national development and Reform Commission announced the 2012 cotton year plan (September 2012 -2013 August) cotton temporary storage and storage plan. It was clear that the cotton temporary storage and storage price in 2012 was 20400 yuan per ton, an increase of 600 yuan / ton compared with last year.

After the announcement, the share prices of the listed companies in the textile industry all hung up, and the gains were encouraging.

Among them, 5.57,0.18,3.34% rose the first place, the increase was 5.07%; the A Rose (9.50,0.00,0.00%) rose second, or 4.28%; in addition, the shares of Huamao shares (6.43, -0.04, -0.62%) and Xinhua Jin (8.99,0.43,5.02%) rose by more than 3%, 3.19% and 3.13% respectively, while ST ST A (7.23,0.27,3.88%), Fujian Nanfang (6.40,0.18,2.89%), Xinye textile (4.01,0.01,0.25%), Phoenix Bamboo Textile (7.03, 6.40,0.18,2.89%), vuri shares (shares), leading shares (5.61, 9.50,0.00,0.00%), Jiangsu sunshine (3.34, 12), Shandong Ruyi (V) and Vico (HK) share price increase were above 2%.

Zuo Zhipeng, deputy director of Huamao stock, said that the cotton planting area of the next cotton year should be good.

Raising storage and purchasing price to stimulate cotton production

Before long, cotton prices fell to a low level. The move of cotton farmers to raise seedlings worried the market whether the supply of cotton would be short in 2012.

However, the current temporary storage of 2011 is coming to an end.

By the end of February, the total amount of cotton stored in the country was 2 million 690 thousand tons, including 1 million 550 thousand tons of Xinjiang cotton, which promoted cotton price recovery and stable operation of the market, effectively protecting the interests of cotton farmers and achieving the expected policy objectives.

Approved by the State Council, the eight departments of the national development and Reform Commission, the Ministry of finance, the Ministry of agriculture, the Ministry of industry and information technology, the Ministry of railways, the General Administration of quality supervision, inspection and quarantine, the general office of supply and marketing and the Agricultural Development Bank of China jointly issued the plan for the temporary storage and purchase of cotton in the year 2012 (September 2012 -2013 August). It is clear that the temporary storage and purchase price of cotton in the 2012 year is 20400 yuan / ton, an increase of 600 yuan / ton over the previous year.

The plan also perfected the execution area and quality standard of the storage area.

The development and Reform Commission said that the timely announcement of the purchase and storage plans and the raising of the storage and storage price were beneficial to further protect cotton farmers' enthusiasm for cotton planting, stabilize cotton production this year, and promote the smooth operation of the domestic cotton market on the eve of the spring sowing of cotton.

According to the economic and trade division of the development and Reform Commission, China

Xiong Xiaokun, a light industry researcher at CIC, said that the national development and Reform Commission raised the price of temporary storage and storage of cotton only to stimulate the enthusiasm of cotton growers to grow cotton, and played a supporting role in cotton prices, thus forming a "market support" effect. It can be said that this measure can play a stabilizing role in maintaining cotton prices.

"Rising price of 600 yuan is difficult to promote cotton prices fluctuate greatly, on the one hand, because of lower cotton textile operation rate and weak market demand, on the other hand, the international cotton price is lower than domestic 2000 yuan / ton, and domestic textile enterprises or most of the acquisition of foreign cotton, further reducing the demand for cotton in the country."

Xiong Xiaokun, a light industry researcher at CIC, said.

Increase in storage and purchase price will push cotton prices up

Xiong Xiaokun, a light industry researcher at CIC, believes that raising domestic and export prices will increase domestic cotton prices slightly. This will increase the cost pressure to the textile industry to a certain extent. Among them, weinqiao textile, Huafang textile (8.48, -0.10, -1.17%) and Changshan shares (4.53,0.01,0.22%) and other cotton textile enterprises are more directly affected. In addition, Shandong and Hebei spinning mills have been operating at six to 70% in recent years, and later cotton yarn stocks will increase or demand will be further weakened.

According to the head of a textile enterprise department, even if cotton prices rise, it will not immediately affect the textile enterprises, which requires a process.

From cotton production to cotton cloth to clothing production, this requires a conduction process, and in this conduction stage, there will be lag.

There are market participants analysis, cotton demand is still weak, and the cotton textile enterprises in the first quarter of the order brought about by the post harvest lint purchase small peak has passed, although textile enterprises have quotes, but the enthusiasm of purchasing reduced, spot market turnover returned to cool.

The enthusiasm of the processing enterprises has begun to pick up, and the sales of cotton yarn and grey cloth are generally in the same place. With the shortage of resources and the difficulty of sales and the extrusion of both ends, the textile enterprises are more difficult to operate, so the domestic cotton prices will remain under pressure for a short time.

At present,

"Combined with the trend of cotton production inside and outside cotton, the impact of cotton prices in the cotton year is temporarily not well judged."

Zuo Zhipeng, a manager of Huamao stock, said.

There are people in the industry who believe that China has mastered over 70% of the effective resources in the global market due to a large number of purchasing and storage. With the passage of time, the proportion of resources in various exporting countries will continue to rise.

China, which holds large amounts of cotton resources, will have stronger control over cotton prices, and the cotton market may be more optimistic.

Xiong Xiaokun, a researcher at CIC light industry, told reporters that textile enterprises need to form an effective docking with the cotton farmers to form a link between the market and agriculture, forming a symmetry of news and realizing a dynamic balance between supply and demand. The rising cost of cotton purchasing and storage will increase the cost of raw materials for chemical fiber and affect the prices of downstream products to some extent.