2014 Domestic Cotton Producing Areas: Lint Loss Enterprises Are Forced To Stop.

Recently, Jingxian County, one of the main cotton producing areas in Hengshui, Hebei, was in the past years.

During the peak season for acquisition and processing, there has been a temporary cold and cheerless situation this year.

Because of the loss of lint processed by cotton enterprises in earlier stage, some enterprises were forced to stop collecting.

In November 17th, the local cotton price white cotton 3 grade seed cotton purchase price quoted 3 yuan / Jin, asked the linen rate 38%, the moisture regain 11%, compared to the previous weekend to drop 0.03-0.05 yuan / Jin, the price principle or according to the linen rate each adjustment 1% price corresponding change 0.10 yuan / Jin implementation, nearly 10 days the local cotton enterprise buys the scene to be able to use "the gate to the birds" to describe, at the beginning of the day there are 5-6 seeds and the cotton to sell, but now nearly one day also can not see a trafficker's cotton pportation vehicle.

There are 1 other important reasons for the purchase of cotton enterprises. There are no detailed regulations on Cotton Subsidy Policy in Hebei province so far. Cotton farmers are hesitant to sell seed cotton to cotton traders. They also fear that seed cotton will be stored longer and lower in quality than they can sell.

Last weekend, a large textile manufacturer in Shandong, known as a "wind vane" with spot sales price, lowered the price of white cotton 3128B lint to the settlement price of 200 yuan / ton to 13800 yuan / ton, which made the textile enterprises in the local and surrounding areas lower the purchasing price of cotton.

For example, the current selling price of cottonseed is 1.13 yuan / Jin, the purchase price and linen percentage, wastage rate 2% and cost 1000 yuan / ton of the above seed cotton, and the cost of new cotton processing is 13220 yuan / ton in theory.

It must be made clear that the cost price is calculated according to the current seed cotton purchase price. Last weekend, the seed cotton price was higher than 0.03-0.05 yuan / Jin, and the price in November 10th was 3.15 yuan / Jin, when the cost was 13550 yuan / ton and 14000 yuan / ton respectively.

In other words, there is a low cost at present, but

The acquisition of such new cotton can not be processed without quantity; the stock on hand of cotton enterprises is basically high cost at the early stage.

The concept now is that cotton enterprises buy and calculate every day, and they are all staring at losing money. There are no sales of spot goods now. "Spot 1 days and 1 prices".

According to legend, a large textile enterprise in Shandong mentioned above will also reduce the white cotton 3128B grade lint to the factory settlement price by 200 yuan / ton to 13600 yuan / ton in November 18th. If the news is true, the local cotton enterprises' life will become even worse.

The performance of the domestic electronic disk market is also helping this moment.

Taking zhengmian futures as an example, when the main contract was shifted in November 11th, the price of the CF1501 contract and the main contract in November 11th were down again. In November, the closing price of the contract decreased by 95, 150, 200 and 80, 215 and 255 respectively. The closing price of November 17th was 13020 and 12750 points respectively. The cost and futures price of the new cotton produced by cotton enterprises were upside down. There is no doubt about the price of the new cotton in Xinjiang. Owing to the weather and the reasons for the listing of the cream, the purchase price of the cotton seed 2 cotton seed in the Southern Xinjiang is 3.00-3.10 yuan / Jin, the purchase price of the cotton seed 3 cotton seed price is 2.94-2.95 yuan / Jin, and the purchase price of the machine seed cotton seed in North Xinjiang is lower than that of 0.75-0.80 yuan / Jin, which is obviously lower than that of the previous stage.

In contrast, the quality and cost advantages of Xinjiang cotton are outstanding.

At present, Xinjiang pick up white cotton 3 grade lint platform pick up price 14400-14600 yuan / ton, machine picked cotton on the basis of this reduction of 1000 yuan / ton, recently showed the textile enterprises slow delivery characteristics, indicating that the textile enterprise's purchasing power or purchasing replenishment strength has declined.

The above performance makes the local feel the present.

Has entered the ice age, the reality of loss is to let the financial strength is limited, all the pressure on processing cotton sales which are not timely sale of lint, unable to buy again, directly stop collecting, waiting for the market to change.