Zheng Cotton Collapsed Main Contract Yesterday Fell 1.8%

"The subsidy policy for real estate cotton prices may have been determined, and the lint per ton may be subsidized by 2000 to 3000 yuan." Cheung Kwok Keung, general manager of Shandong Zawa Hirohito Industrial Development Co., Ltd. told futures Daily reporters that this will suppress domestic cotton prices to a certain extent.

Before that, the rumour about "price subsidy policy for cotton producing areas in the mainland" has been on the market for a long time.

Since the implementation of the price subsidy policy has not yet been approved by the relevant departments, cotton farmers in the mainland are generally reluctant to sell when new cotton comes into the market. "At present, relevant departments are tightening up the time for formulating policy implementation details, which are expected to be announced soon." Cheung Kwok Keung said.

At present, China has announced and implemented the target price subsidy policy in the cotton producing area of Xinjiang, and the cotton producing areas in the mainland are not listed in the "direct subsidy" plan. The enthusiasm of cotton growers in the mainland will probably be hurt. In addition, the cotton prices in China have dropped considerably since November last year.

According to the insiders, if the price subsidy policy of cotton production areas in the mainland can be implemented, the enthusiasm of cotton growers in the mainland will grow relatively stable, and the cotton planting area in the mainland will not fall off. At the same time, the new circulation of cotton will also be smooth and the market supply will increase significantly in the near future.

"Actually, this is only a superficial phenomenon. Domestic cotton prices have returned to the downward track after a slight rebound in the previous period, which is closely related to the new cotton market, the lack of market demand, and the loss of the downstream textile industry. Cheung Kwok Keung said that at present, Shandong, Hebei, Hubei and other real estate areas of new cotton have been listed, but because most of the cotton ginning plants do not start, traders do not buy, most of the harvested seed cotton can not be sold in the hands of cotton farmers, "there is a greater pressure on the new cotton market in the late market".

From the current situation of the textile industry, the whole industry is losing money. situation It has not changed. "In addition to suspending the auction of national cotton reserves, the issuance of cotton import quotas and the reduction of new cotton production and other factors, it is difficult to find a factor to boost cotton prices in the current market." Cheung Kwok Keung said.

Reporters interviewed a number of industry people to learn that Cotton ginning factory And traders dare not accept, unwilling to accept new seed cotton, mainly worried about future policy may change. In the case of policy uncertainty, we are not too sure about the price trend of the future market. More importantly, the purchase price of cotton seed in the mainland is 1 yuan lower than that of the same period last year. For example, the purchase price of Hebei, Shandong and other places is around 3.3 yuan / kg, which makes cotton farmers generally reluctant to sell.

"Estimated in the mainland Cotton price After the introduction and implementation of the subsidy policy, the mainland's new cotton market will accelerate and the market will be smooth. A cotton textile industry said.

It is understood that as of now, the mainland cotton picking has been completed 80%, the new seed cotton sales and processing progress is slow. The demand for replenishment of cotton textile enterprises is strong, but sales of cotton yarn and other products are difficult.