At the end of August, Xinjiang cotton will gradually enter the fluffing period, and the time for seed cotton to be weighed is getting closer and closer. A few days ago, some companies in southern Xinjiang have purchased a small amount of cotton for trial rolling, and the purchase price was significantly higher than the previous year.
It is reported that a certain company installed new processing equipment this year. In order to check the operation of the equipment, it only purchased two cars of seed cotton for trial rolling. The purchase price was 8.6 yuan/kg. These cottons are all early-maturing dryland varieties and are on the market relatively early. Large-scale cotton wadding in southern Xinjiang will have to wait until mid-September.
Currently, companies are gearing up to acquire seed cotton. The person in charge of a ginning company in Xinjiang said that the purchase price of seed cotton this year is expected to be more than 1.0 yuan/kg higher than last year. Now the market generally expects the opening price to be 7.5 yuan/kg, and the highest purchase price may reach more than 8.5 yuan/kg. Once it is converted into lint cotton, If the cost is higher than 18,500 yuan/ton, companies will be cautious in purchasing. After all, high prices correspond to high risks.
Local people in Xinjiang said that now that the loans from the Agricultural Development Bank of China have been gradually received, a large number of factory contracting companies can only bite the bullet and grab it. As long as the market purchase price rises, futures will most likely follow the purchase price. Last year, the purchase price of Xinjiang seed cotton continued to rise, getting higher and higher. This may also happen this year. Once the futures price covers the lint processing cost, giving enterprises hedging opportunities, operating risks will drop significantly.
People in the Xinjiang cotton industry believe that there is now a strong atmosphere of rush to harvest seed cotton in Xinjiang, and enterprises need to remain calm. Although the price of seed cotton is highly expected to rise, it may turn around at any time, especially beware of futures prices moving ahead. Finished, caught off guard. </p
