According to feedback from cotton processing enterprises in Awati, Shaya, Bachu and other places, the purchase price of long-staple cotton has continued to decrease slightly in the past week or so, and the listing price of some ginning plants has dropped to 12.5-13 yuan/kg. On the one hand, at the end of the acquisition period, the grade and quality indicators of long-staple cotton have declined significantly; on the other hand, the selling price of cotton seeds in Xinjiang has dropped sharply recently, and the number of oil mills that have stopped harvesting and production has increased, so the cost pressure of long-staple cotton needs to be alleviated.
Judging from the survey, the progress of picking and selling long-staple cotton in 2021/22 has exceeded 90%. Due to concerns that cotton processing companies may stop purchasing at any time, plus the difficulty of preserving long-staple cotton and the impact of cooling and precipitation weather, cotton farmers are rushing to sell. It’s safe to settle down as soon as possible. A long-staple cotton company in Avati said that as of mid-December, it is expected to purchase a total of about 13,500 tons of seed cotton, and the purchase volume is slightly higher than that in 2020/21. It is currently working hard to process, warehouse, and sell, striving for long-staple cotton before the Spring Festival. The cotton sales progress is close to or exceeding 50%, thus reducing the risk of acquisition and operation this year.
Cotton spinning mills in Jiangsu, Zhejiang, Shandong and other places have reported that the recent production and sales rates of OE yarns and ring spinning with counts of 40S and below have been low, while the shipments of high-count carded and combed yarns from 50S to 80S have been relatively stable. The two major cotton districts in Kashgar have seen an increase in the number of large and medium-sized mainland textile companies inspecting and purchasing goods (mostly replenishing stocks before the Spring Festival), and the road and railway shipments of long-staple cotton have also continued to rebound.
It is understood that the current quotation of grade 3137 long-staple cotton in Xinjiang is 45,500-46,000 yuan/ton, and the quotation of grade 3138 long-staple cotton has reached 46,500-47,000 yuan/ton. The quotation has not been included in the Zheng Cotton Contract and long-staple cotton acquisition. Significant adjustments occurred due to price fluctuations. A medium-sized textile company in Shandong stated that currently, not only are there a handful of SJV Pima cotton and Egyptian Giza 86, Giza 88, and Giza 90 spot stocks in major ports in China, but the net weight quotations of Pima cotton are also available. As high as 59,000-59,500 yuan/ton, which is significantly higher than the 2021/22 Xinjiang long-staple cotton. Judging from the contract requirements and product indicators, there is no problem in using Xinjiang long-staple cotton as the cotton for high-count yarn orders.
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