This year's cotton prices have plunged

Only after the New Year was over, the cotton price plummeted. Seeing that the cotton that is full of summer rains has thrived, a bumper year will come again, and people will once again accept the test of cotton prices – what impact will the low price of cotton have on cotton farmers? What impact will it have on textile companies in cotton-producing areas? What are the trends in cotton prices? What is the mentality of people?

With these questions, in the past few days, the reporter interviewed some of the main cotton-producing areas in Xinjiang, one of the three major cotton producing areas in China.

Chen Zongying, a five-member employee of the Quanhe Site at the Eighth Division of the Xinjiang Production and Construction Corps of the Agricultural Eighth Division, last year planted more than 420 acres of cotton, yielding more than 400 kilograms of seed cotton, 10.3 yuan per kilogram, and more than 600,000 yuan net of cost. Chen said: “I have planted my cotton for the rest of my life and I never thought that I can earn so much money. This is the sum of ten years of cotton planting income.”

"At that time, I watched the rising price of cotton every day and jumped to my heart. Money in my pockets could not believe that this was true. I always felt that it was very ridiculous." Chen said with an uneasy look.

Guo Junzhi planted 400 mu of three crops last year, and the cotton yield was higher than Chen Zongying's. Only this one item earned more than 800,000 nets. Apart from being happy, I worry about the future cotton market.

He said: Last year's high prices, so that planting costs along with rising, rising water, especially labor costs, up and down, labor costs are expected to be too high, for us is not a good thing.

Guo told reporters that when the labor price was the highest last year, it was 9 yuan per hour, and today it has risen to 14 yuan per hour.

Yang Bing, a company with five springs in Quan Shuidi, said that there are 7,217 acres of positive broadcast area in Wulian, and cotton is basically planted in recent years. Last year, the total production of 2,900 tons of seed cotton, the average yield of 380 kilograms. There are 92 employees in total, and the average income of cotton-planting has reached 90,000 yuan, which is more than twice as high as in previous years. This is unprecedented in history.

He believes that from the point of view of cotton farmers, of course, the higher the price of cotton, the better; but from the perspective of long-term health of the market, the cotton price was too high last year. At that time, the estimated price was around 7 yuan/kg. Who would have thought that it would exceed 10 yuan? In 2003, 7.4 yuan/kg - 8 yuan/kg, and 4.8 yuan/kg in 2008, the ups and downs of this kind, simply relying on the strength of cotton farmers, could not resist the market risk.

Yang Lianchang said that such a high cotton price last year will definitely increase the cost of spinning, weaving, and garments companies. This will make many companies unstoppable and it is possible to suspend production and bankruptcy - and this will definitely give the next year's acquisition of cotton. Prices have an impact, and too low prices can affect the enthusiasm of cotton farmers.

They hope that the prices will be relatively stable, which will not only increase the output of cotton farmers but also help the development of textile enterprises.

People predict this year's cotton purchase price: Although the price is now a bit lower, the price of the new cotton is no one who said no one!

"We have no end in our hearts," said Chen Zongying. "According to this trend, when the scale is 5 yuan and 1 kilogram, the cotton will be white this year!"

Compared with cotton farmers, textile companies in Shihezi appear calm.

In recent years, the domestic textile giants Xiongfeng, Huafang, Huafu, Ruyi, Hongsheng, and Alize have settled down in the Shihezi Economic Development Zone. Their cotton spinning production scale has reached 2 million ingots annually.

Among them, the production scale of Tiansheng Textile Co., Ltd. invested by Xiongfeng Group in Shihezi reached 1.25 million spindles.

He Xinrong, chairman of the company, said that Tiansheng has digested more than 100,000 tons of lint a year, while the Shihezi area has produced about 350,000 tons of lint annually.

Over the past few years, Tiansheng has basically no storage cotton, regardless of the high price of cotton. The reason for this is that companies in cotton producing areas are basically not cotton-sourced, and storage cotton can cause a decline in the quality of cotton; of course, the most important point is that the Shihezi government has adopted a special policy on the original cotton security mechanism, and it is the largest local cotton company. Yinli Group signed a cotton supply contract with a cotton company to avoid the impact of cotton price fluctuations.

Li Yongsheng, deputy director of the company's mining department, took last year as an example. When the cotton price was fired to nearly 30,000 yuan/ton, Yinli Group's cotton price to Tiansheng was 24,900 yuan/ton to 25,300 yuan/ton. He said that such a protection policy has played a barrier role for Shihezi textile companies to resist risks. Therefore, regardless of how the cotton price fluctuates this year and has a protective barrier, companies will naturally have a lot of security.

He Xinrong said that Tiansheng did not consider plans to buy cotton at low prices.

The second division of the Xinjiang BINGTUAN Agricultural Division Yongxing Company is the second largest agricultural purchasing and marketing company. Zhou Yi, party secretary of the company's party, said that last year, the total output of cotton in the second division of the second agricultural division was more than 40,000 tons. This side was taken in from the group and it was bought by the company. By the end of December last year, there was no inventory - it was never the case in the past. Yongxing purchased it from the group at a price of 26,000 yuan/ton, and added a little fee. The initial concern was that it was difficult to sell. The unexpected was that supply was in short supply - many companies ordered 3 tons at the beginning of the year and the result was 10 tons - they Get cotton and immediately increase the price and change hands, making a lot of money.

Zhou Shuji said that at first, he was worried about jealousy and frightened himself to buy a house to eat. I didn't expect these textile companies to care about the price increase. They said that the rise in water was high, cotton rose, and our yarn also rose.

The same situation for textile companies and cotton acquisition companies is quite different.

The western Aksu cotton industry is very anxious lately. The person in charge of the company said that last year it was afraid of receiving no cotton, it had purchased 3,000 tons of lint at 32,000 yuan/ton, and it has been selling lint from the end of last year to the end of April. The second did not sell, although the national subsidies for 400 yuan per ton, less than 32,000 yuan, made a compensation.

Ms. Li, a cotton trader who has done cotton business for more than a decade in Hami, collected tens of thousands of tons of lint last year at a price of nearly 30,000 yuan/ton. At the beginning of this year, she saw a sudden drop in prices, with a shot at 26,000 yuan. Out, now is also more than 10,000 tons pressure.

It is understood that by the end of April, Xinjiang still had nearly 700,000 tons of lint waiting to come to Xinjiang. The Urumqi Railway Department stated that the transportation of petroleum and other bulk commodities took up a large number of wagons, and the amount of wagons sent to the main cotton-producing area in southern Xinjiang was limited. Therefore, it was unable to satisfy the cotton shipment in a short period of time.

"A part of the cotton acquired last year was acquired through loans, and the loan repayment pressure is very high. Now we can see the profit brought by last year's price increase, because the cotton backlog cannot be sold and it is being diluted every day." Aksu A head of a cotton processing plant Wahale Mamaiti said that if the pressure of cotton in the hands of the company cannot be sold, this year will reduce the acquisition of new cotton.

At present, many cotton traders have the same ideas as buying and selling.

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