Cotton Is Not Earning Money, Chen Cotton Stock Is Big.

The expected reduction of cotton planting area in China is conducive to the rise of cotton prices. In the past month, cotton prices in domestic spot have continued to strengthen. However, after the surge in April, the current trend of the price of zhengmian and spot cotton has slowed down. Yu Lijuan, a senior analyst at Jinshi futures cotton, seems to have seen a sharp rise in the 1509 contract price of the main cotton company in recent years under the impetus of funds. However, considering that the textile consumption of the lower reaches of the cotton industry is still in the doldrums, whether the cotton price can continue to rise or not depends on the game of late capital. At the same time, 10 million tons of state cotton stocks should not be underestimated. When to sell, it is worth noting. The pressure of supply in the future is still relatively large. At present, the trend of rising price of Chen cotton will change at any time.

According to the data released by relevant agencies, as early as the beginning of May, most cotton planting in Xinjiang was nearing completion. Most of the cotton in Turpan, Luntai, Akesu and western South Xinjiang had sprout. The spring sowing time in the whole region was faster than that in the same period last year, of which 20 million 515 thousand and 800 mu of cotton was planted, an increase of 27.7% over the same period last year.

Zhang Jiangang, a cotton trader in Ningbo, told reporters that taking into account the weather factors, it is estimated that there is a possibility of planting new cotton in Xinjiang. The final area is increasing or decreasing. But according to what he knows, the probability of reducing cotton planting area in Xinjiang this year is even greater.

"Although the government implemented the cotton target price policy in Xinjiang to protect the interests of cotton farmers to a greater extent, the decline in seed cotton purchase price, the jump in labor costs, the increase in production material input, and the reduction in government subsidies may still make it impossible for cotton farmers to earn too much money." Zhang Jiangang said that the income of seed cotton is expected to decrease, and the income of planting other crops is higher. This year, some cotton growers will take the initiative to reduce cotton planting area. More importantly, Xinjiang's local government plans to reduce cotton planting area by 4 million 665 thousand mu this year, reducing the scale to 15.72% of the total cotton planting area. Meanwhile, the Xinjiang production and Construction Corps plans to reduce the cotton planting area by 1 million mu.

Cotton is a pillar industry in Xinjiang. Why should the local government guide farmers to reduce their planting area? According to a press survey, the local government has realized that the future cotton policy may change. For example, the target price of cotton in Xinjiang this year has been reduced to 19100 yuan from 19800 yuan per ton last year. In the future, government subsidies for cotton farmers may also decrease. Local governments should guide farmers to grow grain on the land suitable for growing grain, and grow cotton on land suitable for growing cotton, and developing diversified businesses will actually benefit the development of cotton industry.

Zhang Jiangang introduced, in addition to the farmers in the producing areas Active reduction In addition to the planned reduction of cotton area, foreign institutions and self-employed households will reduce the planting area of cotton in Xinjiang, or simply abandon cotton seeds. It is understood that due to the increase in rental costs, labor difficulties, subsidies can not be achieved, low cotton prices and other factors, a lot of Xinjiang rental cotton planting institutions and self-employed households in the past two years serious losses.

Shandong cotton Traders Hu Zhiqiang told reporters that this year in Hebei, Shandong In Hubei, Hunan and other places, there is a widespread phenomenon of "cotton fields" changing into "grain fields". Most of the farmers in these traditional cotton planting areas have reduced their cotton planting area. Reporters visited the market to learn that in 2014, the government implemented the target price policy in Xinjiang, and implemented a policy of 2000 yuan per ton of lint subsidy in the cotton area of the mainland, which led to a decrease in the income of cotton farmers in the mainland compared with previous years. Many cotton farmers in the mainland do not grow cotton because they do not make money. It is understood that the important cotton producing area in Dezhou, Shandong, grew more than 2 million 900 thousand mu in 2008, and this year it has dropped to about 500 thousand mu.