It is understood that some ginning factories in Changji, Shihezi, Kuitun and other places have recently opened scales on a trial basis. The purchase price of machine-picked cotton is concentrated at around 5.10 yuan/kg (40% clothing content, less than 12% moisture, and less than 12% impurities), with the highest The price limit is 5.30-5.40 yuan/kg, and the purchase price of “egg roll cotton” is increased by 0.05-0.10 yuan per kilogram. At present, the purchase price of seed cotton is adjusted every day, which is basically consistent with the purchase price expected by the market in the early stage, and the gap with the expected sales price of cotton farmers is more than 2 yuan/kg.
According to the above-mentioned purchase price, the equivalent cost of lint is less than 12,500 yuan/ton. Such a price is attractive to ginning companies. After all, the futures price is around 13,500 yuan/ton. Purchase and processing hedging can lock in a profit of 1,000 yuan. This It is very difficult in a bear market. At present, cotton has entered a bear market. According to the thinking of “bears are long and bulls are short”, this bear market will go through a long period of time. Faced with many uncertainties in the future market, ginning companies’ risk-free hedging obviously adds a layer of security protection for themselves.
A cotton company in Shihezi said that at present, ginning plants mainly focus on trial harvesting and rolling, and the prices are quite different from the prices expected by cotton farmers. It is difficult to increase the volume of short-term purchases. In addition, most large-scale cotton processing companies do not set prices and open scales. The price is 5.10 yuan/kg. The opening price is not representative. It is expected that due to factors such as the epidemic in northern Xinjiang, delays in the return of ginners, and funds not yet fully in place, a representative purchase price of machine-picked cotton may be formed during the National Day. This year, the game between cotton processing companies and farmers will also Very intense.
Relevant authorities in the Xinjiang Autonomous Region issued a reminder that as domestic downstream cotton demand remains sluggish and the intensity of U.S. and Western sanctions remains unabated, cotton processing companies in Xinjiang are advised to be cautious in market purchases and reasonably control business risks. A large cotton trading company believes that the overcapacity of processing in Xinjiang in 2021/22 will mainly be reflected in raising the price of seed cotton, regardless of costs, while the overcapacity in 2022/23 will be mainly reflected in the hedging and price reduction of Zheng cotton. As long as there is profit, cotton processing Companies will hedge, which means that the futures market will still face considerable pressure later.
</p
