Shandong: Cotton Enterprises To Pay Warehouse Receipts, Cotton Seeds Are Expected To Rise

In mid December, the national cotton market monitoring system Heze monitoring station staff approached the cotton production line, visited Heze Chengwu, Juye, Jining Jinxiang and other places ginning factory to understand the current acquisition, sales, business mode and so on.

After visiting, we know that at present, Juye, Heze is mainly selling spot products. With the acquisition and sales, the profit is very small. In order to reduce production costs, many nights are processed, and the production is packed in plastic bags (the cost per ton is less than that of cloth bags by about 25 yuan). Because of the high night temperature processing, the moisture regain of lint is high, and there is a risk for making warehouse receipts. Heze Chengwu area mainly sells spot and futures warehouse receipt. As the local cotton planting area has been further reduced, the cotton mill has also been reduced. The local daily purchasing volume has dropped by more than 50% over the previous year. On the one hand, cotton farmers do not recognize the current price, but they are reluctant to sell.

Jining Jinxiang area cotton market is different, most of the local futures warehouse receipts are the main ones. First, the warehouse will be sold immediately when the market is in the market. Only a few of them are sold in stock, mainly for two reasons: first, to do the warehouse receipts in a large amount of money; two is to make warehouse receipts losses last year, and to face extreme trade quotas, such as trade wars and other uncertain factors. Some cotton lint has a deficit of about 100 thousand yuan, so this year dare not take risks.

Through 3 days' visit, the price of seed cotton is 3.23-3.28 yuan / kg, and the purchase price of Jinxiang area is slightly higher. The price of cottonseed is generally 1.16-1.2 yuan / Jin, and cotton seed price is generally expected to rise in the future.