Why Cotton Prices Fell In Xinjiang

As of April 28th, Xinjiang In the southern Xinjiang, 2128 and 3128 hand picked cotton picking prices were 13600-13700 yuan / ton, 13300-13400 yuan / ton respectively, compared with last week, they continued to decline 100 yuan / ton. The spot price of lint in the mainland also declined. On the 28 day, the 3128 and 4128 levels of real estate cotton in the the Yellow River River Basin were quoted at 12800-12900 yuan / ton and 12400-12500 yuan / ton respectively. The 3128 level price of the real estate cotton in the Yangtze River Basin is 13100-13300 yuan / ton, the 4128 level is 12700-12800 yuan / ton, and the price of some enterprises has dropped 50-100 yuan / ton compared with last week.

It is understood that the decline in the spot price of lint is affected by the following factors:

First, the spring sowing of cotton in Xinjiang is coming to an end. Cotton sales Slow.

At present, in the southern Xinjiang, Akesu and Kashi have completed more than 80% sowing, and Korla has completed about 60%. The cotton growers are expected to complete the spring sowing in the southern Xinjiang cotton region by the end of this month or early May. This year, the regiment started broadcasting early and sowed faster. At present, the seeding rate has reached 85-90%. In a few days, we can complete the sowing. It is understood that because of the small profit margin of the mill this year, many local ginning mills have plans to outsource the production line. In addition, at present, Xinjiang cotton is slow to sell. Many cotton ginning plants reflect that the average weekly car load is a good result. The mainland market has made a slight turnover, but the price is still being suppressed. Moreover, the profit margins of cotton mills and ginning mills are only 100-200 yuan / ton.

Second, the "high inventory, low demand" situation restricts the market.

At present, there are about 10 million tons of national cotton storage. The huge cotton inventory has made cotton processing enterprises and cotton enterprises have to worry. In addition, the textile enterprises are generally nervous, or the inventory of products is relatively high. They need to tighten their sales and withdraw funds. After sales, credit sales are slow, they can only be purchased with the purchase, and the quality requirements of lint are also stricter.

As the export sales report was good, last week (April 20-24) cotton rose, as of 23, the US cotton July contract closed at 65.45 cents / pound, compared with 17 cents 63.29 cents / pound 2.16 cents / pound. Last week (20-24), the price of the domestic cotton futures market continued to rise. Up to 24, the 1509 contract of zhengmian main unit closed at 13230 yuan / ton, up 210 yuan / ton compared with 13020 yuan / ton of the previous week, and the futures rose to provide a good support for the lint spot market. In addition, the current running rate of the cotton ginning plant is low, and the manufacturers have limited source of goods and low willingness to sell at low prices.

For the time being, Domestic demand Still weak, it is difficult to improve in the short term. It is expected that the spot market of lint will continue to operate in a stable and weak position next week.