Market Situation: According To Statistics, The Basis Purchase Of Domestic Cotton Market Is Still Not Smooth

Domestic cotton market: according to statistics, as of December 25, 2022, Xinjiang has processed 3907000 tons of lint, a year-on-year decrease of 15.65%; Among them, Xinjiang's local lint processing volume was 2253400 tons, a year-on-year decrease of 19.75%; The lint processing volume of the Corps was 1.654 million tons, a year-on-year decrease of 9.34%.

The industry believes that the main reason why Xinjiang Production and Construction Corps' cotton processing progress is significantly faster than the local is the impact of the epidemic from September to November. Local processing enterprises obtained loans from financial institutions later than those of Xinjiang Production and Construction Corps, and local farmers and cotton brokers are more reluctant to sell. It is worth noting that since late December, the daily increased lint processing volume in Xinjiang has dropped below 40000 tons (38800 tons and 36700 tons on December 24 and 25, respectively), but the year-on-year growth rate is still more than 10%.

From the quotation of Xinjiang processing enterprises and traders, on December 25-26, the Xinjiang regulatory base quoted 14100-14200 yuan/ton for "Shuang 28" (or "Dan 29") machine picking cotton, 14200-14300 yuan/ton for "Shuang 29" (or "Dan 30") machine picking cotton, and slightly increased with the shock and rebound of Zheng Mian's main contract. A processing enterprise in Keping County, Aksu, said that since December, the progress of cotton public inspection has been accelerated. Driven by the repayment of loans by some ginning plants, the rise of cash flow pressure and the comprehensive loosening of epidemic control, although cotton trading enterprises and futures companies are more active in inquiry procurement than in the early days, the basis procurement is still not smooth, and "Buy It Now" accounts for the majority of spot transactions.

It is understood that recently, the freight of Xinjiang cotton highway going out of Xinjiang has continued to rise, and the popular routes in Shandong, Jiangsu, Henan and other provinces have increased slightly. First, the recent low temperature and snow in Xinjiang, Gansu, Shaanxi and other places, coupled with the decline of drivers' willingness to go out of Xinjiang near the Spring Festival, the freight has "risen with the tide"; Second, the number of drivers and passengers infected by logistics and transportation companies increased significantly, the rate of on duty decreased, and the number of vehicles leaving Xinjiang decreased. A cotton trader in Jiangsu reported that since December 15, the company's highway transportation costs for cotton shipped from Bachu to Jiangsu had increased by 40-50 yuan/ton, but it was still difficult to find a car, so it had to repeatedly delay shipment.