Cotton Sits On The "Cold Bench"

In the past year, after May 1,

Ma Junkai, Secretary General of Dezhou Cotton Association, said that the price of cotton yarn has also dropped significantly in recent years. Textile enterprises have come up with various ways to promote sales, and the selling quotation is rather confusing. At present, the mainstream quotation of C32S pure cotton yarn is around 35000 yuan / ton, and 5000 yuan / ton in two months, which has fallen below the cost line of most cotton spinning enterprises.

Cotton yarn sales difficulties, increasing inventory, capital turnover difficulties, more than 60% of small and medium-sized spinning enterprises began to limit production, some enterprises have been suspended production.

Liu Chunyan, a staff member of Xiajin express Textile Co., Ltd., told the reporter that the company is now reluctant to stop production because "recruitment is so difficult now, and it will be difficult to recruit again after the shutdown."

According to her introduction, at present, most textile enterprises in Xiajin stock up to two months or so (normal stock should be 15-20 days), plus cotton prices continue to decline, and the operating rate is insufficient.

Ma Junkai introduced that the general mindset of cotton people is rising and selling.

From last September to now, cotton prices have gone up and down, and there have been two high points: 14.4 yuan / kg and 12.8 yuan / kg. The cotton farmers who can catch these two time points are afraid to not even get 5%. Most of the cotton growers are sold between the ups and downs.

Xiajin county is a large cotton growing County in Shandong province. Farmers have the habit of selling cotton after the Spring Festival, and many cotton farmers have been on the sidelines.

Ma Junkai said that in late April and early May, the acquisition of cotton was basically over, and the acquisition process was over 95%. At present, the acquisition process in Dezhou is only 75%, and cotton farmers still have 25% cotton reserves.

Among them, the second cotton producing counties in Xiajin province have more than 40% cotton farmers' cotton reserves, and some villages have about 80% cotton reserves.

In the face of uncertain market conditions, cotton farmers find it difficult to recover their seed cotton prices to the beginning of the year, coupled with seasonal factors, and worry that prices will continue to fall.

"Textile enterprises are difficult to sell cotton yarn, unwilling to buy lint, and some enterprises limit production or stop production; cotton processing enterprises are afraid that cotton prices will continue to fall and they are unwilling to buy cotton. All of them have been stopped. Cotton farmers are reluctant to sell cotton at low prices, and no one wants to sell cotton at the moment."

Ma Junkai said that the current cotton market has faced such an embarrassing situation.

The reporter learned from the local agricultural department that the cotton planting in Dezhou ended at the end of April, totaling 1 million 610 thousand mu, which was basically the same as last year's sowing area.

Sun Liwu, an information analyst at Zhuo Chuang, told the reporter that although the US cotton trading on the 10 day ended and Zheng cotton continued to rebound, the market stabilization mentality was on the rise. But in May, the price of cotton stabilized or even rebounded.

Sun Liwu said that this week because of the purchase price of a large textile enterprise in Shandong is temporarily stable, plus less cotton in rainy weather, resulting in a slowdown in the market, but in the past 1 months, the cumulative decline of up to 5000 yuan / ton, resulting in most cotton merchants, cotton enterprises mentality pessimism panic, poor shipment.

In April, CPI rose by 5.3% over the same period last year. Inflation pressure is still obvious. There is a great possibility that the relevant policies will be introduced later, and the tightening of funds will continue.

It is unlikely that the cotton market will stabilize.