Recently, the picking progress of seed cotton in the mainland is at 30-40%, and the picking progress of early-sown cotton is close to 50%, and the progress is accelerating. But in sharp contrast, the cotton ginners, especially the 400-type cotton ginneries, have not made any big moves.
It is understood that there are dozens of 400-type cotton ginning factories in Xiajin County, Shandong Province, but currently only 4-5 have opened scales. Most of the ginning factories are still hesitant to open scales. The same is true for the purchasing market in key cotton areas such as Dezhou and Liaocheng in Shandong. Most of the 400-type ginneries have not officially opened scales and have not yet launched a purchasing climax.
So why?
To collect or not to collect, that is the question. Type 400 manufacturers are generally worried about “turning the ship around”. The person in charge of most 400 type cotton companies said that once the machine is started, only large-scale processing can make a profit. Moreover, it was difficult to sell lint last year, and most cotton companies ended up with losses. This year Many cotton ginners are even more discouraged. In addition, it is difficult to apply for bank credit, and private financing costs are high and the risks are high. Cotton ginners dare not get involved easily, and most of them are still waiting and evaluating.
Cotton farmers quoted 3.8-4.0 yuan/jin, and ginners said it was difficult to harvest seed cotton. On the 27th, the person in charge of a 400-type ginnery in Dongying, Shandong Province said that most cotton farmers are not satisfied with the price of seed cotton. In addition, the recent quotation of seed cotton has been chaotic, and most cotton farmers have not yet sold seed cotton in large quantities. The person in charge said that this year, cotton farmers quoted higher prices, and the price of seed cotton of decent quality was basically 3.8-4.0 yuan/jin.
So, when will the 400-type cotton ginnery open a large number of scales this year?
As of now, the cumulative operating rate of domestic cotton enterprises is less than 17%. Due to frequent profit squeezes and sales pressure, cotton enterprises are not in a hurry to purchase seed cotton. The wait-and-see mood is still strong. Currently, less than 10% of the domestic cotton enterprises have opened scales. The stalemate situation will be short-term. will continue.
Looking back at the market under the “Golden Nine” market, the impact of product inventories of terminal textile enterprises and environmental protection storms has not diminished. It is reported that the operating rate of textile enterprises this month is only about 54%. In the face of the new cotton market, textile enterprises have no confidence in the new cotton indicators. and prices are still worrying, and the weak trading of domestic and foreign cotton futures has created a bearish atmosphere, some textile companies are still waiting for the centralized listing of Xinjiang cotton. At present, the central environmental protection inspection team has been stationed in various provinces, and the enthusiasm for cotton yarn sales has been suppressed to a certain extent. The trading volume of downstream pure cotton gray fabrics is still relatively limited, and there is currently a small amount of new lint cotton on the market, and the large volume of reserve cotton in the later period creates an urgent demand for new cotton. There is a buffer, and the market’s wait-and-see mood still exists.
The market expects that this year’s 400-type ginners may postpone the scale opening to mid-October. During this period, the seed cotton market is relatively concentrated. Most 400-type ginners seize this time period to make acquisitions.
The purchase of seed cotton is also a process of competition between cotton farmers and cotton companies. The market has become very fierce recently. What will be the final price range of seed cotton? Can cotton market entities achieve a win-win situation? let us wait and see!
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