Xinjiang Yuli: Cotton Production Increases, Seed Cotton Prices Rise

In October 28, 2019, the research group of cotton production and purchase in Xinjiang (Southern Xinjiang) hosted by the Zhengzhou commodity exchange and China Cotton Storage Information Center Limited came to Korla and Yuli, Xinjiang. Held talks with Xinjiang Lihua cotton Limited by Share Ltd, second division wing Rui supply and Marketing Co., Ltd., Bazhou Agriculture Bureau, and visited several cotton ginning plants in Yuli County in the afternoon.

The most heard word in the visit is: "the output of Yuli cotton is higher than that of last year". The reason is that in 2018, nearly 80% cotton fields in Yuli County were hit by disaster, and the phenomenon of yield reduction was obvious. In addition, we saw that seed cotton was stacked up in the ginning factory, and the seed cotton vehicles sold and the upcoming public inspection lint vehicles could be seen everywhere. Although there is no specific figure for the year-on-year increase, through the acquisition of the cotton mill, we can see that the cotton production in Yuli County is an indisputable fact.

It is understood that at present, the purchase price of hand picked cotton in Yuli Prefecture is around 5.8 yuan / kg, and the purchase price of machine picked cotton is about 5.2 yuan / kg, which is higher than that in the early stage of opening up, and the price of cottonseed has dropped, the current price is around 1.72 yuan / kg. Local cotton enterprises in charge of analysis and introduction, seed cotton prices rise because of the impact of the North Xinjiang rumors production reduction effect; two is the local ginning factory rush to receive the phenomenon is serious, the larger change is, in previous years, the seed cotton sale is from cotton farmers to enterprise sales, and this year, some enterprises directly to farmers' cotton field initiative purchase.

At present, the purchase enthusiasm of cotton enterprises in Yuli County is still high, and the proportion of seed cotton sale is nearly 80%. Local processing enterprises expect that the scale purchase will last for 15 days or will end in mid November.

A local cotton company said that although the recent purchase price of seed cotton has gone up, the cost of lint processing has increased. According to the current market "double 28" hand picking cotton price quote 13200 yuan / ton (public) about, "double 28" machine pick cotton 12900 yuan / ton (public) price, the processing enterprises still have profits.