Cotton Prices Fell To 19 Thousand From 30 Thousand Per Ton In Half A Year.

The 2010 cotton year has experienced ups and downs, and the acquisition of cotton in 2011 has begun to scale. Since the opening of the scale, the domestic cotton market price has been lower than 19800 yuan / ton for 5 consecutive trading days.

In September 8th, cotton temporary purchase and storage plan was launched. In the face of the current complex market situation, how will temporary purchase and storage affect cotton prices? How can we guarantee the temporary purchase and storage of cotton in the context of bank credit contraction?

Cotton prices experienced "roller coaster", which fell for 5 consecutive trading days. Purchase and storage price After the start of the State Cotton temporary storage

2010 cotton year is the most complex year in the cotton industry, and cotton has never had any quotes. Data show that in 2010, the price of new cotton rose at a high beginning, and the cotton price index rose from 18002 yuan / ton in September 1st to 31302 yuan / ton in November 11th, or up to 74%, setting the highest level of domestic cotton prices in history.

However, since March this year, the cotton market has been on the decline. China's cotton price index has been dropping from 31228 yuan / ton in March 10th to 19059 yuan / ton in August 16th, a drop of 39%. This decline is also unprecedented. The cotton price throughout the whole year has experienced a roller coaster market.

The two heads of the Agricultural Development Bank of China said that from the supply and demand situation, China and the world's cotton production will have a certain increase, and many factors such as the global economic recession have inhibited the growth of cotton demand. Many domestic and foreign organizations have predicted that the cotton will be oversupplied in the new year. The adjustment of this supply and demand situation also puts forward new requirements for the flexibility and adaptability of the cotton credit policy.

In order to stabilize the cotton market, in March this year, the eight departments of the national development and Reform Commission, the Ministry of Finance and the China Agricultural Development Bank jointly issued the "2011 cotton temporary purchase and storage plan", and decided to implement the temporary cotton purchase and storage system from 2011.

According to the plan, the 2011 temporary storage will be implemented in 13 main cotton producing provinces (districts and cities) of Xinjiang. The price of temporary storage and storage will be 19800 yuan per ton of standard grade lint to the warehouse. Once the market price is lower than the above level, the state will carry out temporary storage and purchase of cotton, and the execution time will be from September 1st to March 31st next year, that is, the new cotton sale period of 2011.

Since the purchase of new cotton, the price of domestic cotton market has been continuously 5. transaction The day is below 19800 yuan / ton. A few days ago, the national development and Reform Commission announced that according to the relevant provisions of the 2011 cotton temporary purchase and storage plan, the China Cotton Storage and Storage Corporation started the temporary storage and storage of cotton in September 8th.

Temporary purchasing and storage policy helps stabilize cotton producers, operators and users. Cotton business market It is expected that cotton prices will show a slight increase after the start of the policy.

It is understood that in 1999, when the price of cotton purchase and sale was liberalized by the state, the state eased the cyclical problems caused by supply and demand and price fluctuations through the temporary storage and purchase of lint in the main producing areas, and played an important role in stabilizing cotton prices and protecting the interests of cotton farmers. The temporary cotton purchase and storage system promulgated and implemented this year will normalize the measures to temporarily collect and store lint cotton in the main cotton producing areas. According to the cotton temporary purchase and storage plan, before the sowing of cotton, the state formulating and announces the temporary purchase and storage price of cotton in the main cotton producing area. When the new cotton is listed, when the market price is lower than the temporary storage price, the state will open the store and store it.

Compared with the original temporary storage and purchase measures, the new system has two outstanding advantages: first, the price of the purchase and sale can be announced ahead of time, so that cotton farmers and cotton enterprises can make their respective production plans ahead of schedule. Two, the open storage and storage of unlimited quantities can make the storage and transportation enterprises reassured to buy seed cotton, so as to ensure that the cotton growers benefit.

Experts believe that the establishment and release of the temporary purchase and storage system is equivalent to a "reassurance" for cotton farmers. The policy will help stabilize cotton production, operators and cotton enterprises' market expectations, protect cotton farmers' enthusiasm for cotton planting, and ensure the supply of cotton market, thereby stabilizing the scale and price fluctuation of cotton production in the future.

Data show that since the beginning of the cotton temporary purchase and storage policy in September 8th, cotton prices have changed the trend of declining early, showing a slight upward trend. The cotton index has risen from 19502 yuan / ton in September 7th to 19738 yuan / ton in September 16th.

According to media reports, since the purchase and storage policy was launched, the market for storage and purchase has been relatively light, and the market's expectations for rising cotton prices have increased significantly. {page_break}

The policy of purchasing and storage is facing enormous financial pressure. The Agricultural Development Bank has prevented the emergence of "selling cotton difficult" and "playing the White Bill" as the primary task of cotton credit.

In the context of relatively tight monetary policy this year, bank credit funds are tight, and the huge amount of capital needed for cotton purchasing and storage can be punctually in place.

The relevant person in charge of the Agricultural Development Bank believes that, from the perspective of the supply of cotton purchase funds, the commercial capital of the acquisition will be greatly reduced, and the demand for funds from the cotton purchase will increase significantly, and the tight monetary policy of the state will make certain pressure and challenges for the policy purchase fund supply.

In addition, market participants also pointed out that some of the 2010 cotton business of the year of purchase and sale suffered losses, and the ability of sustainable operation and capital declined, and the reliance on credit funds would increase further.

In this regard, the relevant person in charge of the Agricultural Development Bank said that in order to do a good job in the temporary collection and storage related work, the head office of the agricultural development bank asked all branches to increase credit support for the cotton that meets the requirements of the purchase and storage after the start of the plan, and to provide timely and full funding to the loan enterprises involved in the storage, so that this policy can be implemented.

It is reported that in the new year's loan qualification confirmation, the agricultural development bank will rationally arrange the purchase fund supply point through the qualification of the loan, so that the loan enterprise of the bank will basically cover the main cotton producing area. The head of the Agricultural Development Bank also said that the bank would inform the farmers of the vast number of cotton farmers who had already recognized the loan qualification through a certain way to facilitate their sale of cotton. The cotton purchase credit conference, which was concluded recently in 2011, put forward that the main task of cotton credit work should be to prevent "selling cotton difficultly" and "making ious".

According to the briefing, in order to ensure the healthy operation of the cotton market and the whole industrial chain, the credit support of the Agricultural Development Bank has also extended from the circulation of cotton to the field of deep processing, and the textile enterprise has also become an important customer group of the bank.

The head of the Agricultural Development Bank said that this extension effectively promoted the value added of cotton processing and protected the interests of the vast majority of cotton farmers. On the other hand, it also broadened its sales channels to support the purchase and sale enterprises, which was conducive to preventing systemic risks and better supporting acquisitions.

By the end of 2010, there were 498 textile enterprises supported by NGO and 43 million spindles, accounting for more than 40% of the whole country. In 2010, a total of 33 billion 460 million yuan was issued to textile enterprises.