Both The Inland And Xinjiang Cotton Producing Areas Have Entered The Late Picking Period And Peak Purchasing Period

The purchase price of 40 lint seed cotton is 4.4-4.6 yuan/jin in northern Xinjiang and 4.75 yuan/jin in southern Xinjiang

Affected by the decrease of cotton planting area and the expected decrease of per unit area yield in some regions, the purchase price of seed cotton this year has shown a trend of high opening and high going. However, due to the strict requirements for the purchase of national reserve cotton, and spin The poor sales of enterprise products, coupled with the suppression of cheap imported cotton, have little room for the increase of seed cotton purchase price.

At present, both the inland and Xinjiang cotton producing areas have entered the late harvest period and peak purchase period. Affected by the decrease of cotton planting area and the expected decrease of per unit area yield in some regions, the purchase price of seed cotton this year has shown a trend of high opening and high going. However, due to the strict requirements for the purchase of national reserve cotton, the poor sales of textile enterprises' products, and the suppression of cheap imported cotton, there is little room for the increase of seed cotton purchase price, and the development prospect of the cotton industry is still not optimistic.

"This year, since the listing of newly produced seed cotton, the purchase price in Xinjiang has gone up all the way, which makes many cotton enterprises suffer unspeakably." Yu Lijuan, senior analyst of Jinshi Futures Cotton, told the Futures Daily that the purchase price of seed cotton in northern Xinjiang has stabilized, with the purchase price of 40 lint of seed cotton at 4.4-4.6 yuan/jin, The average purchase price in southern Xinjiang is 4.75 yuan/jin.

Ma Junkai, a cotton expert from Dezhou Cotton Association, Shandong Province, said that cotton enterprises in Dezhou had begun to purchase cotton in early September. The purchase price of newly produced seed cotton was about 4.20 yuan/jin, up 0.15 yuan/jin from the same period last year. Now, the purchase price has climbed to 4.3-4.4 yuan/kg.

Based on the above purchase price of seed cotton, cotton enterprises process seed cotton into lint and sell it to the state treasury, which is basically unprofitable, and some enterprises with high production costs will even lose money. What is the reason for the high purchase price of seed cotton across the country this year, especially in Xinjiang?

According to Yu Lijuan, there are many reasons for the high purchase price of Xinjiang seed cotton, mainly due to the rapid growth of cotton planting costs and the decline of cotton yield per unit area. In recent years, the shortage of domestic flower pickers has become more and more obvious, and the labor cost of picking has risen rapidly, which has greatly increased the production cost of cotton. At the same time, many expenses for cotton planting this year have also increased to varying degrees, such as water fees, land contracting fees, fertilizer costs, etc.

In addition, cotton production in some areas of Xinjiang has also decreased to a certain extent this year. During the cotton growing period, the temperature in Xinjiang is uneven, and some areas are accompanied by water shortage, which leads to a large decline in cotton yield. The decline in unit yield makes cotton farmers have high expectations for the purchase price of seed cotton, and their reluctance to sell is also serious. The increase in the number of ginning plants, especially many enterprises in the mainland, generally opened plants and baled plants in Xinjiang this year, which led to a pattern of "more monks than porridge" in the seed cotton purchase market. The mutual price increase between ginning plants directly led to the continuous increase in the seed cotton purchase price.

Dezhou City, located in the northwest plain of Shandong Province, is one of the key cotton producing areas in China. According to Ma Junkai, the cotton planting area of the city this year is 1.13 million mu, about 200000 mu less than last year. From the middle of July to the first ten days of August, the local rainfall was concentrated, and water accumulated in low-lying cotton fields, some buds fell off, and the number of cotton peaches decreased. Some cotton peaches at the bottom turned black, which had a negative impact on the cotton yield. It is estimated that the average yield of seed cotton in Dezhou this year was 460kg per mu, 10% less than that in normal years.

Li Nan, a textile researcher of Luzhen Futures, told the reporter of Futures Daily that according to the visit and research of cotton producing areas such as Binzhou, Liaocheng and Dezhou in Shandong, affected by the reduction of cotton planting area, poor weather conditions and other factors, the cotton output in Shandong Province will decline this year. In addition, the weather in the picking period will turn better, and the cotton quality will be better. Cotton farmers generally have the mentality of cherishing sales, The purchase price of seed cotton once rose to 4.5 yuan/jin recently. On the one hand, the rising price of seed cotton has reduced the profit margin; on the other hand, the strict purchase of the state-owned cotton reserve and the slow withdrawal of funds have increased the capital pressure on enterprises, and the profits of ginning plants have declined significantly. In addition, at present, textile enterprises have sufficient stocks. Most of them mainly use imported cotton. Some enterprises report that the quality of thrown and stored cotton in the country is poor, and the cost of raw materials is high. Some cotton mills have increased the production proportion of blended yarn.