Cotton Prices Fell, Cotton Enterprises To Buy More Cautious

In the face of the current falling cotton prices and the lack of seed cotton resources, most enterprises have stopped collecting, and the enterprises that insist on purchasing are not ideal.

If cotton prices continue to fall in the late stage, cotton enterprises will not have profits if they buy and process, so no enterprise will buy seed cotton. What do cotton farmers in the mainland do?

The current cotton market is in short supply. In February 29th, Zheng cotton's main contract CF1609 also fell below 10000 yuan after the CF1701 contract. The cotton spot price fell all the way along with the continuous turnover of cotton futures and the rapid price drop.

According to the national cotton market monitoring system survey data, as of February 26, 2016, the whole country

The rate is 93.6%, of which the sale of Xinjiang has ended and the mainland sale rate is 78.7%.

That is to say, 21.3% of the seed cotton is still in the hands of cotton growers.

It is understood that in the face of the current falling cotton prices, coupled with less seed cotton resources, most enterprises have stopped collecting, and insist on the acquisition of corporate performance is not ideal.

Recently, some enterprises in Shandong have bought about 39% of the clothes with a price of around 2.95 yuan / kg, less than 10% of the moisture content, and three cotton seed cotton with a Ma value of B or above.

Also less, the daily purchase volume does not exceed 30 thousand jin.

Anhui cotton enterprises are more anxious than ever, and they dare not rush to buy. The price of white cotton three grade seed cotton was 2.85 yuan / Jin years ago, but the market price was 2.90 yuan / Jin after that, and the cotton farmers were less than 2.90 yuan / Jin.

The purchase of seed cotton in other cotton areas is similar.

The cotton price of Shaanxi Dali has calculated an account. At present, the purchase price of white cotton grade three seed cotton is about 2.7 yuan / kg, which has dropped by 0.10-0.15 yuan / Jin compared with the pre holiday period, and the selling price of cotton seed is 1.10-1.13 yuan / Jin, the cost of standard grade lint has been 11800-11900 yuan / ton (the processing fee is calculated by 1000 yuan / ton), and the 3128 grade lint spot has fallen to 12000 yuan / ton, and the futures price is still falling.

At present, cotton farmers have no place to sell cotton in the inland cotton areas that have been stopped.

If cotton prices continue to fall in the late stage, cotton enterprises will not be able to make profits if they buy and process.

Can cotton stored in cotton farmers be sold at that time? Therefore, it is suggested that cotton farmers should sell them as soon as possible, so that they can be sold as soon as the price is right, so that they will not be left at home.