China Cotton Association Monthly Report: The Total Purchase Price Of 6 Million 660 Thousand Tons Of Cotton Nationwide Has Stabilized And Rebounded.

China Cotton Association

The monthly report on cotton situation in China (October 28, 2014) was released. It was reported that cotton growth was slow this year and the total yield of cotton declined.

With the implementation of the new year's macroeconomic regulation and control policy and the implementation of the Xinjiang cotton target price reform pilot scheme, the acquisition of seed cotton has gradually started.

Due to the double effects of pickup delay and price decline, enterprises are cautious in entering the market, cotton farmers are reluctant to sell more heavily, the market is in a stalemate, and the progress of purchase is considerably slower than that of the same period last year.

Cotton prices returned to the market and lint spot prices increased.

In September, most of the the Yellow River River Basin, the northern part of the Yangtze River Valley, and the northern and eastern parts of Xinjiang continued to have more precipitation and less light, which was unfavorable for the formation and quality improvement of cotton production. The three major problems were the following:

The output is expected to decrease slightly compared with the previous stage.

The China Cotton Association expects the total output of the country to be 6 million 660 thousand tons, down by 50 thousand tons.

Cotton growing slowly in Xinjiang and Changjiang River Valley, delayed picking period, and some cotton early maturing or premature senescence in the Yellow River River Basin, picking faster.

Entering the October, cotton acquisition and processing entered the peak season.

With the large-scale cotton backbone enterprises taking the lead in entering the market, breaking the deadlock, opening up the scale business increased significantly, cotton farmers' willingness to sell, cotton purchasing prices stabilized and picked up.

Tianjin Jinghai cotton sale gradually

According to the report of Tianjin Cotton Association, Tianjin has entered the peak season for cotton sales.

From Jinghai area, we know that the price of gin is controlled at 3.20-3.35 yuan / Jin according to the difference of lint and moisture.

As the weather turned cool, cotton farmers gradually recognized the market price, which was more active in late October.

Affected by this year's low rain climate, cotton has high lint percentage and top flowers, and the average picking rate is about 80%. The average harvesting capacity is 180-200 kg. This year is expected to be 10 days ahead of the previous year.