Xinjiang's cotton prices are difficult to stabilize the market

It is understood that Xinjiang cotton has been transferred to Shandong, Jiangsu and other places in the 3128 offer in the 14100-14200 yuan / ton, 2128 in the 14400-14500 yuan / ton, and some northern Xinjiang machine picking cotton prices in the 13200-13300 RMB/ton, the price difference between hand-picked cotton expanded by 200-300 yuan/ton. Some users in the Mainland reported that due to the heterogeneity of fiber and impurities in machine-extracted cotton, the spinning of more than 40 yarns was reluctant, and it was therefore rejected by most textile companies.

"The stability of Xinjiang cotton has been maintained for more than 20 days. I think this is the bottom." On the 13th, a businessman from Shandong, who is doing business in Xinjiang, said: As of now, there are basically three kinds of prices in Xinjiang: First, the Corps price. Because of its public ownership nature and large scale, most of them are very willing to be strong. At present, the prices of hand-picked cotton 3128 and 2129 in individual divisions are 14,500 yuan/ton and 14,800 yuan/ton, respectively, and they stay at the level of new cotton at the time of listing, 800-900 yuan/ton higher than the market price, and the current status. It is still "waiting for price". Second, local manufacturers. Its quotations follow market fluctuations and its shipping mentality is strong. Third, the cotton traders, traders, and ginners holding large amounts of cotton in their hands are currently under a lot of pressure. With the approaching Spring Festival, the desire to withdraw funds is stronger, and there is a price reduction mentality.

Although the cotton price in Xinjiang shows a stable trend, the market’s main players are still “anxious”. First of all, cotton growers have the sentiment of clearance. As of mid-January, over 90% of seed cotton sales in Xinjiang have been completed, but some cotton farmers still have not finished selling seed cotton. On the 13th, the mainstream price of seed cotton in southern Xinjiang was 4.0-5.0 yuan/kg, which was nearly 1.0 yuan/kg lower than that in mid-December 2014. This caused the cotton farmers to wait and see attitude for a while, but as the year approached, most of the ginners stopped and stopped processing, and the cotton farmers finally “could not sit still”. Second, ginners face tough choices. Does cotton still sell or sell? No profit; not sold? What to do if you continue to fall in the later period. At present, most Xinjiang enterprises choose to "sell high and sell low," that is, selling low-grade cotton at a low price, returning the funds to repay loans; temporarily reluctant to sell high-quality cotton, with "very high price" and "red pressure" as the mainstay. However, some market participants also stated that if the market for lint cotton has not yet improved, it is not ruled out that some of the main players “sell” high-quality cotton. Third, most of the mainland cotton traders and traders have returned home. The main reason is that the current market conditions for cotton are "unclear and unpredictable" and they can only retreat.

As for Xinjiang long-staple cotton, the recent price is temporarily stable, but sales are not satisfactory. On the 13th, Xinjiang Awati County ginning factory 137 pick up price 26,500 yuan / ton, 237 26,000 yuan / ton; and Shandong, Jiangsu Province, 137 warehouse delivery price at 27,200 yuan / ton line, 237 26,700 yuan / About tons. Textile companies mainly use them with purchases, and it is difficult to see large-scale stocking. The market believes that the recent long-term cotton or maintain the pattern of temporary stability, this gave the authors a shot.