Cotton Textile Enterprises Frankly Say "Great Pressure" To See The Future Market Empty And Confused

By the end of August, the staff of the national cotton market monitoring system came to the northern Xinjiang area to investigate and understand the current situation of the local cotton market after visiting the local cotton trading enterprises, textile enterprises and processing enterprises.

With the continuous escalation of Sino US trade frictions, cotton prices at home and abroad continue to fall sharply. At present, there are still more than one million tons of lint in Xinjiang in 2018 / 2019. With the gradual picking and listing of new cotton, enterprises can not help but worry about lint sales in the old year. Through a visit to a local processing enterprise in Northern Xinjiang, we learned that the enterprise purchased 130000 tons of cotton processing last year, and 50% of them are still unsold. Now the enterprise is selling lint at a substantial price, and the sales pressure is self-evident.

When the staff came to the local cotton field, they saw that the cotton was growing well and began to sit on the top of the peach tree. On average, there were about 9-12 cotton peaches on each cotton plant. Due to the good ventilation, some of the cotton in the field began to split bolls and open bolls. Although it was affected by bad weather during the sowing period, the weather improved and the temperature rose after July. At present, the cotton growth in Xinjiang is basically equal or slightly better than that of last year. If the weather does not change greatly in the later period, it is predicted that the cotton yield in Xinjiang this year will be equal to that of last year.

In another month, Xinjiang cotton will usher in centralized scale purchase. Due to the continuous decline of cotton price in the current spot market, the prices of other crops are on the rise, and only cotton prices fall back to the prices of previous years. At present, lint sales in the market are all sold at a discount, and the price is maintained at 12500-13000 yuan / ton, which is far lower than the purchase cost price. The processing enterprises generally say that the losses are serious. Although the processing enterprises have made preparations for the acquisition this year, they are still lack of confidence and feel confused about the cotton market in the new year. It is uncertain whether the domestic futures market will bottom at 11000 yuan / ton or below 10000 yuan / ton in 2016. At the juncture of the new year and the new year, the low price of lint will inevitably affect the purchase price of seed cotton in the new year. Local enterprises generally predict that the opening price of machine picked cotton will be 4.5-5 yuan / kg. With a large number of cotton listed, it is not ruled out that the purchase price may fall to 4 yuan / kg.

According to the calculation of cotton planting cost, according to the seed cotton yield of 400 kg / mu and the purchase price of 5 yuan / kg, the current cotton planting cost is 1800 yuan / mu (own land), and the profit is 200 yuan / mu; if the cotton planting cost of contracted land is 2300 yuan / mu, it will face a loss (the state subsidy is not calculated above). In any case, this year's seed cotton acquisition market is still complex and changeable, for enterprises and cotton farmers, there are multiple pressures hanging above.

As we all know, the sharp decline of lint price will certainly affect the development of the textile industry. To solve the problem, on the one hand, it is necessary to wait for the Sino US economic and trade friction to ease and the domestic and foreign economic situation to improve; on the other hand, the enterprises urgently hope that the state will issue relevant policies as soon as possible to stabilize the cotton market price and ensure the healthy and sustainable development of cotton purchasing and processing enterprises and textile enterprises.