Cotton Farmers Reluctant To Sell Psychological Heavy Seed Cotton Acquisition Difficult To Start

In January 11th, the sale price of local 3128 grade lint was 13100 yuan / ton (gross weight was raised from the ticket price), and the sale price of grade 4128 lint was 12600 yuan / ton, compared with the day before yesterday.

At present, spot sales are more difficult, because most of cotton enterprises sell mainly to textile enterprises, but textile enterprises are less motivated to buy.

The main reasons are: first, most of the large textile enterprises that can apply for quotas will have enough stock on the eve of new year's day, slow down the pace of purchase after the festival; two, the Spring Festival is coming soon, and textile enterprises will have difficulty in capital turnover, and insist on purchasing textile enterprises to buy with them, and it is a small batch of piecemeal purchases. Three, the downstream consumption of textile enterprises is still in a weak trend, and it is difficult to improve in a short time.

Some cotton enterprises insist on hedging in the Zheng cotton futures market, but with the acquisition process, the quality of seed cotton has declined.

According to the test data of a local cotton enterprise, the number of white cotton grade 4 and light spot cotton grade 2 has increased, the white cotton grade 4 premium is 500 yuan / ton, the spot cotton grade 2 discount is 700 yuan / ton, the profit margin of the warehouse cotton has been engulfed, and it has already been in a loss situation. Therefore, some cotton enterprises indicate that if we want to continue hedging in the futures market, we must first ensure the quality of the seed cotton purchased, and only if we keep the quality of the seed cotton to make the warehouse cotton is meaningful.

Therefore, in the later process of seed cotton purchase, cotton enterprises will be cautious to purchase, buy or reject low quality cotton seeds or refuse to sell at low prices.

As of January 9th

The total number was 772, including 461 Xinjiang cotton, 81 more than the previous day, 311 real estate cotton warehouse receipts, 35 more than the previous day, and the limited forecast of 508 sheets.

From the warehouse receipt data, cotton enterprises are seen.

It is difficult to sell in the futures market and complete the two legged walk to obtain business income.

Recently, local

The purchase price of white cotton grade 3 seed cotton is 2.95 yuan / jin (lint percentage 38%, moisture regain 13%). The purchase price of white cotton 4 grade seed cotton is 2.85 yuan / Jin, and the daily purchase quantity is less.

As cotton seed cotton purchase is not active, seed cotton purchase quantity is less, cottonseed output is limited, cotton enterprises have strong desire to cotton seed price, the current offer is 1.15 yuan / Jin, compared with last week.

According to the 3% loss, plus the cost of 1000 yuan per ton, the white cotton 3 level production cost is 12950 yuan / ton. If the two notarization test results in a demotion phenomenon, the profit margin of the production warehouse can be compressed, so it is possible to enter the loss.

There are still more than a month to go before the Spring Festival. Most cotton growers are on the one hand selling cotton for use. On the other hand, fireworks and firecrackers are being set up during the Spring Festival.

It is understood that this year's cotton seed progress is relatively slow, estimated that only 50% now, so local cotton enterprises look forward to the eve of the Spring Festival set off a small upsurge of seed cotton purchase, can buy some of the better quality seed cotton.

Most of the local cotton enterprises have withdrawn from the Xinjiang cotton mine, and most cotton enterprises said that the acquisition of Xinjiang is not ideal. It is not that they have not completed the contract, that is, the cotton seed purchase business is at a loss level. Some of the cotton enterprises in the stock market are going to carry on the sale of the cotton seed to the mainland for sale. Because of the need to return the loan and the tight cash flow of the enterprises, the cotton application will be pferred to the warehouse for management or pledge to the pport market to complete the pportation work. But in recent years, the sale of Xinjiang cotton is also larger. The selling price of the 2128 grade cotton lint with better quality is 14800 yuan / ton, and the selling price of the 3128 grade lint is 14300 yuan / ton.