According to feedback from cotton processing enterprises in Aksu, Bachu, Kuitun and other places in Xinjiang, affected by the continuous oscillation and decline in the purchase price of seed cotton in Xinjiang, the basis quotation and fixed price of lint cotton have been lowered to a greater extent than in early and mid-November. The sales basis of partially hedging ginners and cotton traders also dropped slightly, and the psychological expectations of buyers and sellers continued to narrow.
On November 25, the price of “Double 29” machine-picked cotton in the supervision warehouse in Xinjiang was 22,450-22,600 yuan/ton. The purchase price of “Double 29” hand-picked cotton from some traders and futures companies also dropped to below 22,900 yuan/ton. , the price difference between “Double 28” and “Double 29” is the same or slightly lower at 50-100 yuan/ton. Overall, the decline from late October has reached 600-800 yuan/ton.
Some cotton processing companies said that due to the large difference in the impurity content of machine-picked cotton in 2021/22, and the relatively large fluctuations in the purchase price of seed cotton in 2021/22, it is common for processing companies to have a lint cost difference of 300-500 yuan/ton. Due to the different acquisition and sales pressures of various cotton processing enterprises, the current quotations of Xinjiang cotton in warehouses inside and outside Xinjiang are relatively confusing. It is not uncommon for the price difference of the same quality and warehouse to exceed 300 yuan/ton.
Judging from the survey, as the oscillations of Zheng cotton contracts fell, the current inversion range of cotton futures shrank from 1,500-2,000 yuan/ton to about 1,000 yuan/ton (excluding transaction delivery, financial costs and other expenses), cotton traders, futures Nowadays, the company’s attention to the “Double 29” and above high-liter water machine cotton picking has increased significantly, and basis procurement has started slowly. The sales progress of Xinjiang cotton in 2021/22 is expected to gradually accelerate.
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