Cotton Production Is Likely To Be Reduced, Yarn Mainly Falls

Recently, the market in the Yellow River Basin is bleak. Cotton prices are low to the soil, traders and dealers suffer heavy losses; pure cotton yarn in the off-season is even more crisis, the factories scramble to inventory. However, there will be times to ride the wind and waves, and the peak season in September may be expected.

New cotton has mixed happiness and sorrow, and the ginning plant is in a dilemma. In the near future, the weather is favorable to cotton growth in Hebei and Henan, but it is only favorable for cotton growth in some areas. On the 21st, a cotton grower in Dezhou, Shandong Province, said that at present, all cotton has entered the full boll period, and weather factors are crucial to future yield. According to the weather forecast, the flood season in August this year is not optimistic. Therefore, most cotton farmers are pessimistic about cotton yield this year.

According to the time node, new cotton will generally be picked in late August, and will be put on the market in the first ten days of September, and the ginning plant will also open the scale in succession. This year, however, is a bit awkward. Many ginning plants said that whether to open the scale this year will depend on this year's cotton production and market.

The ginning plant said there were three difficulties this year. Relatively scattered acquisition of cotton seeds is difficult. Second, cotton prices are low. Most ginners will lose money in 2019. Will the next year repeat the same? The third is that the cotton processing industry is on the decline, and the characteristics of large capital and thin profit make the practitioners less and less.

"The dilemma of leaving and staying" is to continue to maintain, or continue to lose money; changing from other industries, there is no suitable industry. What a difficult word.

The pure cotton yarn fell step by step and fell into the soil. According to the feedback from enterprises in Shandong, Hebei and other places, as of July 21, the benchmark price of domestic pure cotton yarn was 18500 yuan / ton, nearly 2000 yuan / ton lower than that in 2019, or about 9%. From the perspective of the Yellow River Basin, the price of c32s for general carding ring ingot is 18600-18800 yuan / ton (including tax and short distance freight, the same below), the price of combed ring ingot jc32s is 22000-22500 yuan / ton, and the price of combed compact Siro spinning jc32s is 23500-23800 yuan / ton (the negotiation space is about 200 yuan / ton). In Zhengzhou, Henan Province, the price of c21s is 18000 yuan / ton (the negotiation space is 200 yuan / ton), the price of c32s is 18600-19500 yuan / ton (high assorted cotton), and the price of OE 21s is around 13000 yuan / ton.

From the pure cotton yarn market point of view, compared with the beginning of the year, carding fell 1600-2000 yuan / ton, the enterprise profit space was greatly compressed, and even loss. Due to the lack of orders, some downstream weaving and printing enterprises choose to reduce the load or stop the machine, which is absolutely negative for the upstream yarn enterprises. Helpless, more and more textile enterprises also choose to stop production or holiday.