Xinjiang: Traders Purchasing Slow Down Cotton Purchasing Market Gradually Cooling Down

According to feedback from some cotton traders and ginning mills, late October, the inquiry and purchase situation of new cotton in Chen cotton and 2019/20 in 2018/19 was significantly slower than that in early October. Among them, Bachu, Akesu and other regulatory warehouses also showed a cooling down mode, and spot quotas began to stabilize.

On the one hand, a few days ago, the CF2001 price of zhengmian futures contract broke 12500 yuan / ton, 12800 yuan per ton, and other integer entry points. Cotton processing enterprises increased the price of the lint cotton, and some cotton enterprises increased more than Zheng cotton. The traders bought the warranty space sharply compressed or even upside down, plus the spot quotation of cotton within the territory was chaotic. The price of hand picked cotton in the southern Xinjiang with grade and quality index was even worse than 200-300 yuan / ton; on the other hand, traders said that the Zheng cotton delivery warehouse was not only small in number, but also in warehousing and warehouse receipts for a long time, which was not conducive to the hedging of cotton enterprises in hedging.

Two cotton trade enterprises in Henan and Shandong reflect that, because of relatively sufficient funds, this year plans to purchase 1-1.5 million tons of cotton warehouse receipt in Akesu area (processing contracts with ginning mills, and then settle the goods in the delivery warehouse). However, there is no Zheng cotton delivery or transshipment warehouse in Akesu area, which needs to be transported to Bachu or Korla.

Investigation shows that on October 18-21, the seed price of cotton seed in the territory began to stabilize, and the price pickup of cotton picking plants in Kuitun, Jinghe, Wusu, Changji and other places also converged. The purchase market, the farmers' mood and the lint processing and storage gradually returned to the right track; and the purchase price of hand picked cotton seed and cotton linen at 42% and below in the southern Xinjiang Kashi and Akesu areas were also controlled within 6 yuan / kg, but in recent days, the selling price of cottonseed fell down continuously, and the pick-up price of the woolen cotton seed mill in some parts of the territory dropped to 1.62-1.65 yuan / kg. The price of hand picked cotton seed also dropped to 1.70-1.72 yuan / kg, and the cost of linen cotton mill continued to rise slightly. From