North Xinjiang Seed Cotton Scale Price Is Expected To Be 4.5 Yuan / Kg Ginning Factory Acquisition Of Insufficient Confidence.

On the 5-10 day of September, the Zhengzhou commodity exchange joint China Cotton Storage Information Center Limited held the "Xinjiang 2019 (North Xinjiang) cotton production forecast research". The survey mainly visited five main canal (6 divisions), Hutubi, Shihezi (8 divisions), Shawan, Kuitun (7 divisions), Bole (5 divisions) and Yili (4 divisions). The purpose is to understand the current situation of cotton growth, harvest, output, purchase and scale in Xinjiang.

In September 5th, the research group visited Wu Jia Qu - Xinjiang Junggar Agriculture Group Co., Ltd. (six division cotton and hemp company), Yunlong cotton industry of Hutubi County, and Manasi Tian Tian cotton industry of Xinjiang Manasi. Through investigation, we know that cotton is growing well. Although the temperature is low, the temperature continues to rise, which has little effect on output. Considering the maturity of cotton, the cotton picking period is expected to be postponed for 7-10 days this year.

It is understood that, due to the continued downturn in the futures market, most cotton enterprises in Xinjiang still have large quantities of cotton stocks that have not yet been sold, and the huge operational risks they undertake. With the advent of the new cotton market, most of the cotton mill is not sure about the future market, and the confidence of cotton purchasing is not enough. The price of seed cotton scale is expected to be around 4.5 yuan / kg this year.

For cotton farmers, the average price of seed cotton in Xinjiang in 2018 was about 6.21 yuan / kg, with an average subsidy of 1.34 yuan / kg, plus cotton quality subsidy of 0.4 yuan / kg, and cotton farmers' income reached 8 yuan / kg. Cotton growers say that although cotton yields will be lower than the previous two years this year, there is a guarantee of target price subsidies, plus cotton planting is less risky than other cash crops, so it is not intended to replant.