Recently, domestic cotton areas have started purchasing work one after another, and the prices of seed cotton in various places have gradually surfaced. The purchase price in Xinjiang is considered a barometer of the market, and every move affects the price trend of spot and futures prices. In the early stages of the acquisition, the price of seed cotton changed rapidly, and various stakeholders secretly competed with each other. It seemed that everything was calm, but in fact it was about to explode.
At present, the price of seed cotton in Xinjiang varies greatly. The purchasing price of some enterprises in northern Xinjiang has risen to 7.3 yuan/kg. As the clothing content continues to increase, the price continues to rise, and even the opening scale price of some enterprises has soared to 7.5 yuan/kg. Let us calculate, if The purchase price of seed cotton is 7.3 yuan/kg (the clothing content is 40%, the cotton seed is 1.8 yuan/kg, and the processing fee is 1,000 yuan/ton). The seed cotton purchase cost price will reach 16,604 yuan/ton. The local purchase cost price just the day before yesterday It is only around 15,500 yuan/ton. How companies can digest such a huge price difference can’t help but worry about it.
At the center of the whirlpool, most cotton ginning companies in Xinjiang are keeping a low profile and are unwilling to disclose more acquisition information. The current cost price of lint is not only inverted with the selling price, but also inverted with the price of Zheng cotton, which only shows that ginning companies are becoming more and more courageous.
According to the reporter’s understanding, in order to take the initiative in cotton resources, powerful textile companies in the mainland have also adopted the form of cooperative factory contracting in Xinjiang in the past two years to purchase and process cotton. Since all the processed lint is used for their own use, they will be open to acquisition regardless of the market price. Of course, the acquisition behavior of these companies is likely to continue to raise prices.
While prices in northern Xinjiang continue to heat up, purchase prices in southern Xinjiang have also increased. According to compiled data, the purchase price in Kashgar has reached 7.0 yuan/kg, equivalent to a lint cost of 16,000 yuan/ton. Of course, there are also companies in southern Xinjiang that set the price of opening scales at around 6.5 yuan/kg, but not all companies are chasing the increase. There are also some companies that are currently cautiously waiting and watching due to limitations in size, capital and other factors, and have remained relatively calm. The Xinjiang market has shown two extreme emotions, one hot and one cold, colliding with each other as if it has exploded.
Looking back at the phenomenon in the mainland market, the weather in Cangzhou, Handan, Hengshui and other places in Hebei Province has been fine recently, which is conducive to cotton splitting. As of September 6, local seed cotton has been harvested one after another, and it is expected that the picking peak will be reached before the end of this month.
Although harvesting has begun, the progress varies from place to place. Some 200-type ginning factories have opened weighing scales, and the price is stable at 3.0-3.3 yuan/jin. On the 6th, the person in charge of a ginning factory in Hengshui introduced that some small 200-type factories in the area have opened scales, and the purchase price of seed cotton is 3.0-3.3 yuan/jin. The purchase standard of seed cotton is also required: the color grade must reach white cotton or light cotton. Standard for spot-stained cotton, stiff-flap cotton, and clothing points above 38%. It is understood that no 400-type gin mills have been opened in the cotton areas of Hebei Province recently, and the trial acquisition of small 200-type gins is only an isolated phenomenon. It is expected that some 400-type gin mills may start acquisitions in late September.
It is understood that cotton enterprises in Hebei are generally cautious this year. It is expected that the price of seed cotton will not be too high at the beginning of the scale opening. At present, it may remain between 3.1-3.5 yuan/jin.
In general, Xinjiang’s annual harvest drama will be staged on time. At the same time, many companies have chosen to close down in order to control risks. After all, production capacity is far greater than output. After the lively mutual bidding, the cotton market will eventually become dull.
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