The Purchase Price Of Long Staple Cotton Is Basically In Line With Fine Cotton.

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Picking, purchasing and processing continued to "advance vigorously". This year, the acquisition of long staple cotton showed slow picking, slow sales, late processing, and stop sales.

On the one hand, the shortage of pickers in Akesu area is still very prominent. Because of the difficulty in picking long staple cotton, picky pickers preferred the fine cotton. On the other hand, the purchase price of seed cotton dropped from 8.1-8.20 yuan / kg to 7.20-7.40 yuan / kg, and the blow to enthusiasm and enthusiasm of farmers for cotton planting increased.

In late October, Shandong, Jiangsu, Henan and other places 2015/16, the 137 and 237 warehouse quotations were 20800-21200 yuan / ton, 19800-20200 yuan / ton (gross weight), while 7.30-7.40 yuan / kg seed cotton corresponded directly to lint.

About 18500-18800 yuan / ton (the current price of cotton seed in southern Xinjiang is 2.52-2.55 yuan / kg), the total cost of warehousing, public inspection and pportation to the inland library is about 19700-20000 yuan / ton (gross weight).

If we consider that every ton of lint has a subsidy of 500 yuan per ton of pportation, so we should pay attention to the current situation.

Price acquisition, ginning factory has 300-500 yuan / ton profit (financial cost calculated by 200-300 yuan / ton), but the enthusiasm of cotton enterprises to buy long staple cotton has dropped to low.

The relevant government departments in 2016/17 did not issue a direct subsidy notice for Xinjiang cotton pportation, even though it was still subsidized by 500 yuan / ton, but from the declaration to the next one year, it was also a test for the enterprise capital chain.

In addition, the domestic long staple cotton is expected to be 17-20 tons in 2016/17, but the consumption capacity is only 7-8 million tons. Moreover, this year, Chinese enterprises are actively signing SJV PIMA cotton and Egypt's Zha Zhan cotton. The supply pressure is very high, and the probability of acquisition is "stuck".

Domestic cotton prices tend to be strong in the short term.

On the macro side, industrial profits returned to a steady growth in September, and the import of cotton, yarn and cloth decreased.

According to the latest statistics of the National Bureau of statistics, the profit of Industrial Enterprises above designated size increased by 8.4% over the same period of 1-9, and the growth rate was basically the same as that in 1-8 months (down 0.03 percentage points).

Among them, the profit in September increased by 7.7% over the same period last year, and the growth rate dropped 11.8 percentage points over August.

According to the General Administration of Customs of China, in September 2016, China imported 60 thousand and 600 tons of cotton, a 12.44% reduction in the chain ratio, an increase of 19.03% over the previous year, 154 thousand tons of imported cotton yarn, a decrease of 9.65%, a decrease of 29.32% over the same period last year, 33 million meters of imported cotton cloth, a decrease of 2.59% compared with the same period last year, and a decrease of 30.35% over the same period last year.

In terms of fundamentals, the purchase price of new cotton fell slightly and stabilized slightly.

Due to the demand for replenishment of downstream textile enterprises, market enquiries increased, and the actual cotton turnover was mainly "good cotton".

In terms of technology, Zhengzhou cotton main contract (CF1701) oscillations upward this week, generally maintained on top of the 60 day moving average, and may continue to rise along the 5 day moving average in the short term, but the pressure near the high level of 15750 yuan is worth noticing.