Due to the decline in cotton planting area in some regions and the expected reduction in yield, the purchase price of seed cotton this year is showing a trend of opening higher and declining. However, due to the stringent requirements for the purchase of the State Reserve Cotton and the sluggish sales of textile products, coupled with the low prices of imported cotton, there is little room for seed cotton purchase prices to rise.

At present, both the Mainland and Xinjiang cotton production areas have entered the late picking and acquisition peak period. Due to the decline in the cotton planting area in some areas and the expected reduction in the yield, the purchase price of seed cotton this year is showing a trend of opening higher and higher. However, due to the stringent requirements of the State Reserve Cotton Acquisition, as well as the sluggish sales of textile products, coupled with the suppression of low-cost imported cotton, there is little room for the increase in seed cotton purchase prices, and the development prospects of the cotton industry are still not optimistic.

“This year, since the listing of newly-produced seed cotton, the purchase price in the Xinjiang region has been rising all the way. This has made many cotton companies miserable.” Yu Lijuan, senior analyst at Jinshi ** Cotton, said that the current purchase price of seed cotton in northern Xinjiang has tended to Stable, 40 cottonseed purchase price of seed cotton in the 4.4-4.6 yuan / kg, the average purchase price in southern Xinjiang is 4.75 yuan / kg.

According to Ma Junkai, a Cotton Expert from the Cotton Association of Dezhou City, Shandong Province, as early as the beginning of September, cotton enterprises in the Texas region had already started the acquisition, and the newly-produced seed cotton was purchased at around RMB 4.20/kg, which was an increase of RMB 0.15/kg from the same period last year. Now, the purchase price has climbed to 4.3-4.4 yuan/kg.

According to the above-mentioned seed cotton purchase price, cotton enterprises processed seed cotton into lint and then sold it to the State Reserve. There was basically no profit, and some companies with higher production costs even lost money. What are the reasons that led to the high purchase price of seed cotton this year, especially in Xinjiang?

According to Yu Lijuan, there are many reasons for the high purchase price of seed cotton in Xinjiang, mainly due to the rapid growth of cotton planting costs and the decline in cotton yields. In recent years, the shortage of picking workers in China has become increasingly apparent, and the labor costs for picking have increased rapidly, which has greatly increased the production costs of cotton. At the same time, the costs of planting cotton this year have also increased in varying degrees, such as water fees, land contract fees, and fertilizer costs.

In addition, this year in some regions of Xinjiang, cotton has also experienced a certain extent of production cuts. During the growth period of cotton, the temperature in Xinjiang is uneven, and in some areas there is a lack of water, which results in a large decline in the yield of cotton. The decline in yields made cotton farmers have higher expectations for the purchase price of seed cotton, and their reluctance to sell was also more serious. The number of ginning factories has increased, especially in many enterprises in the Mainland. This year, they generally opened factories in Xinjiang and contracted plants. They also caused the seed cotton acquisition market to have a pattern of “less glutinous rice”. The reciprocal price increase between ginners directly resulted in the purchase price of seed cotton. The continued rise.

Dezhou City is located in the northwest plain of Shandong and is one of the key cotton producing areas in the country. According to Ma Junkai, the cotton planting area in the city this year was 113 million mu, which was about 200,000 mu less than last year. From mid-July to early August, the local rainwater is concentrated, water appears in low-lying cotton fields, some flower buds fall off, bolls are reduced, and the bottom of individual bolls turns black, which adversely affects cotton production. This year, the average yield per mu of Texas seed cotton is 460 pounds. Decrease by 10% over normal years.

According to surveys conducted in the cotton producing areas of Binzhou, Liaocheng, and Dezhou in Shandong Province, the cotton production in Shandong Province will decline this year due to the reduction in cotton planting area and poor weather conditions. This will increase the quality of cotton during the picking season. Well, cotton farmers generally have a pity for selling goods. The seed cotton purchase price has recently risen to 4.5 yuan/kg. On the one hand, the rising price of seed cotton has reduced the profitability. On the other hand, the strict acquisition of State Reserve Cotton and the slow return of capital have increased the financial pressure on companies, and the profit of ginning factories has fallen sharply.

In addition, the current textile enterprises have sufficient stocks. Most enterprises use imported cotton as the main part. Some companies report that the quality of the thrown storage cotton is poor and the raw material cost pressure is high. Some cotton spinning mills increase the production ratio of blended yarns.