New seed cotton high price listing, cotton farmers laugh ginning plant cry!

category:Finance
 New seed cotton high price listing, cotton farmers laugh ginning plant cry!


According to the reporters understanding, at present in Xinjiang cotton market, the saddest day is the package factory processing lint merchants. Under normal circumstances, these merchants have prepaid the ginning factory rent, and there is a quantitative constraint on how much lint to process. If the seed cotton can not be purchased, or the number of seed cotton purchased does not match the processing capacity, then these people will have to bear a large loss.

Purchase of seed cotton and capitalization of lint trade market

In recent years, due to the wide application of cotton futures and the emergence of cotton option, a new financial derivative, cotton industry is becoming more and more futures and capitalization. It is understood that at present, the domestic capital market has sufficient capital supply and low cost, and the cotton industry is a more mature field of industry and finance integration. Therefore, the capitalization degree of seed cotton acquisition and lint trade market is higher this year.

The US ban on Xinjiang cotton has a great impact on the cotton market

Novel coronavirus pneumonia is the main variable in the domestic cotton market. First, the influence of the US on the ban on cotton trade. Two, the development of the new crown pneumonia epidemic abroad; three, the elimination of all links in the domestic cotton industry chain; and four, the change of the downstream demand.

Due to cotton expensive yarn cheap, most of the textile enterprises are operating at a loss. Recently, although the overall sales of cotton yarn have shown signs of recovery, and many orders transferred from India have invigorated the spirit of textile enterprises, the current market price is still low, and the operating rate of textile enterprises has not fully recovered, so the demand still can not provide enough support for cotton yarn prices.

From the inventory point of view, the inventory of each link in the cotton industry chain is not large, textile enterprises basically buy as they use, and their cotton raw material inventory is at a low level. At the same time, most textile enterprises are trying to reduce the processing scale and are still struggling to support. In addition, since the listing of new cotton, the purchase price of seed cotton is relatively high, and the quotation of new lint cotton can not be accepted by the downstream. Most textile enterprises take a step by step attitude towards the purchase of future raw materials. From the impact of the United States export ban on Xinjiang cotton, it increased the uncertainty of market development and made the downstream demand side appear cautious wait-and-see mood. In addition, the market is more concerned about whether the EU and other countries follow up the standing in line. At present, many downstream customers require textile enterprises to write a letter of guarantee, instead of using Xinjiang cotton. However, the implementation is difficult, and many enterprises dare not take risks, especially large enterprises generally dare not sign guarantee certificates. At the same time, the industry is also concerned about whether Chinas relevant institutions will issue relevant countermeasures. Source: futures daily editor: Yang Bin_ NF4368

From the inventory point of view, the inventory of each link in the cotton industry chain is not large, textile enterprises basically buy as they use, and their cotton raw material inventory is at a low level. At the same time, most textile enterprises are trying to reduce the processing scale and are still struggling to support. In addition, since the listing of new cotton, the purchase price of seed cotton is relatively high, and the quotation of new lint cotton can not be accepted by the downstream. Most textile enterprises take a step by step attitude towards the purchase of future raw materials.

From the impact of the United States export ban on Xinjiang cotton, it increased the uncertainty of market development and made the downstream demand side appear cautious wait-and-see mood. In addition, the market is more concerned about whether the EU and other countries follow up the standing in line. At present, many downstream customers require textile enterprises to write a letter of guarantee, instead of using Xinjiang cotton. However, the implementation is difficult, and many enterprises dare not take risks, especially large enterprises generally dare not sign guarantee certificates. At the same time, the industry is also concerned about whether Chinas relevant institutions will issue relevant countermeasures.