Cotton Prices Go Down Only Sparing Cotton Farmers To Abandon Cotton From Grain &Nbsp; Short Term Or Difficult To Improve

Cotton prices have continued to decline in recent days, cotton farmers in Xinjiang, Shandong and other major cotton producing areas generally appear.

Cotton prices are low, cotton farmers can only

Mamuti Cajal, a cotton grower in Hai Lou Township, Sha Ya county, Xinjiang, has planted 10 mu of cotton this year, and has picked nearly half of it.

Although the cotton harvest was good and the quality was good, it did not make him happy.

"Last year, the average purchase price of cotton reached 14 yuan per kilogram. If we can't get 9 yuan this year, we should say that it is difficult to maintain capital gains."

He said.

This year cotton prices began to show a rapid decline since the beginning of the year. The price of four grade lint has dropped from 30 thousand yuan per ton to 19 thousand yuan at the beginning of this year.

Reporters learned that at present, the purchase price of cotton in southern Xinjiang is generally around 8.7 yuan per kilogram, and according to the state's announcement of 19800 yuan per ton.

"The total loan of cotton planted this year is 15 thousand yuan. According to the output this year and the current purchase price, all the cotton in the field has just been enough to repay the loan after the sale. There is not much surplus. The main income this year depends on the interplanting of jujube trees in the cotton field."

Mamuti Cajal said.

In Shandong, another big cotton province thousands of miles away, many cotton farmers' "disappointment" about cotton prices is also beyond words.

Jin Minghai, a cotton grower in Jin Hao Zhuang Township, Linqing City, Shandong, said that he wanted to have more varieties of grain last year, but cotton prices were not bad, and cotton varieties were different.

It is precisely because of the price problem, Xinjiang cotton Kai Chi acquisition has been more than a month now, but the progress of the acquisition is still slow.

Faced with dissatisfied cotton prices, most farmers hold

Some cotton farmers want to "abandon cotton from grain".

When interviewed by reporters, some cotton farmers said that in recent years, cotton prices fluctuated greatly, the risk of planting cotton was bigger, and the cost of labor and time was low, and the overall income was relatively low.

In some suitable areas, cotton farmers have planned to abandon cotton seeds and replant wheat, corn and other food crops.

"Planting cotton can only grow in one season, while planting wheat can grow corn next year. In the two quarter, how to get more than 2000 yuan per mu of gross income?"

Jin Minghai said, now people find cotton pick up more than one yuan per kilogram, and still can not find anyone. It's better to grow grain and go out to work to save worry.

The calculation of the Department of agriculture and economic affairs in Xinjiang's Sha Ya county also shows that the cost of planting one mu of cotton has exceeded 1000 yuan this year, which does not include the cost of labor, the cost of accommodation, and the cost of picking cotton.

In addition, the rapid rise of agricultural prices has also reduced many farmers' cotton yields.

Dezhou, Shandong, is a large cotton growing market in Shandong. In recent years, the cotton planting area is about 1 million 600 thousand mu, which was driven by the good market in 2010. The planting area increased to 1 million 700 thousand mu last year.

But recently, reporters in Xiajin, Dezhou and other places interviewed found that some farmers have begun to pull cotton and relay wheat.

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Yu Dianping, director of Plant Protection Station of Xiajin County Bureau of agriculture, said that farmers are sensitive to prices. In the past few years, when cotton prices fell, many crops that could grow grain had grown grain. Only those salinized land and sandy land had to continue to grow cotton. If cotton yields were longer than grain crops, the phenomenon of cotton planting would be more common.

Tang Yujing, manager of a cotton purchasing enterprise in Linqing City, Shandong, said that the price of 19800 yuan per ton for the country was standard grade cotton, but cotton quality generally failed to meet this requirement.

Recently, a large cotton enterprise in Shandong has been reducing its price for four consecutive grades for three consecutive times, so the state's purchase and storage price is relatively small for many cotton farmers with poor quality cotton.

Short term trend or difficult improvement

Some industry experts and experts said that the downward trend of cotton prices this year has both the impact of global cotton supply and demand reversal and other factors. There is also the reason why the downstream demand is still sluggish. It is difficult for prices to rebound significantly in the short term, but cotton prices will not fall sharply under the influence of the national "bottom up" policy.

The latest global cotton supply and demand forecast released by the US Department of agriculture (USDA) in mid October showed that the global cotton output in 2011/2012 increased 270 thousand tons to 27 million 40 thousand tons compared with September, while consumption decreased by 180 thousand tons to 24 million 900 thousand tons, and the output was larger than that of 2 million 140 thousand tons of consumption.

Downstream demand, although the price of cotton yarn has been relatively stable recently, the 40 yarn of the combed yarn is maintained at about 29 thousand yuan per ton, but the operation of the cotton mill is still not good.

Ma Junkai, Deputy Secretary General of Dezhou Cotton Association, said that since the end of August, cotton prices have improved with the steady rise of cotton prices, and the shut-down enterprises have resumed work in succession, but they are still in a slight deficit.

After part of the cotton mill resumed, even if the wages increased, it was difficult to recruit workers. The overall operating rate was only 60% to 70%.

Ren Quanyuan, general manager of knitted Limited by Share Ltd of Ji'nan head of state, said: at present, the international market is still not good, exports are still not restored, the domestic market is hard to open, and labor costs are rising. The difficulties faced by textile enterprises are hard to reverse.

Some people in the industry believe that cotton prices were too high last year, resulting in some enterprises turning raw materials to chemical fiber raw materials, to a certain extent, affecting the demand for cotton.

In addition, with the appreciation of RMB and the rise of labor costs in China, the cost advantages of Vietnam and India began to appear, which weakened the competitiveness of Chinese enterprises.

For cotton market outlook, Zhang Yanjie, an information analyst, said that the supply and demand of global cotton is relatively abundant, and the actual demand for downstream is still difficult to start quickly in the short time of global economic turmoil.

With the new cotton coming on stream, there is no substantial improvement in the downstream demand, and the cotton yarn market is mainly disadvantaged.

Ma Junkai believes that, under the influence of the national storage "bottom", this year cotton prices will be in the range of 19 thousand to 25 thousand yuan per ton concussion.

Some experts said that China's cotton imports accounted for nearly 1/3 of total demand. If cotton prices continued to slump, the interests of cotton growers would be damaged, which would probably lead to a decline in planting area, which would affect supply decline and price rise again.