Since October, the domestic cotton market has formed four market prices in stages: first, the average daily transaction price of the first batch of central reserve cotton in 2021 launched on October 8; second, the warehouse corresponding to Zheng Cotton’s main contract CF2201 The unit price (need to consider storage and delivery fees, transaction and delivery costs); the third is the transaction price of Xinjiang Chen Cotton in 2020/21 (still very representative before mid-November); the fourth is Xinjiang cotton processing enterprises and cotton traders Quotation of new cotton in 2021/22. The price of cotton is “Quartet”, the market is somewhat chaotic, and repeated trials between buyers and sellers are inevitable.
According to statistics, as of October 26, Zheng Cotton had 2,479 warehouse receipts (+25), a decrease of 2,283 receipts compared with the same period in 2020/21, a decrease of 47.94%. As of the 26th, a total of 809,988 tons of lint cotton had been inspected by public inspections in Xinjiang cotton areas in 2021/22, a decrease of 23.84% compared with the same period last year. The price of new cotton in 2021/22 is “upside down” from the Zheng Cotton CF2201 contract by more than 2,000 yuan/ton. Not only is it difficult for traders and futures companies to carry out basis purchasing on a large scale, only a small amount of premium has reached more than 1,800 yuan/ton since mid-October. High-quality machine-picked cotton was sold in scattered transactions, and Xinjiang ginners had no chance of hedging sales.
A medium-sized cotton processing company in Aksu stated that due to the existence of multiple cotton “market prices” in the short term, coupled with the continuous increase in regulatory efforts by relevant departments and the “double control + double limit” in some provinces, cotton and cotton yarn prices have increased. Waiting for consumption to encounter resistance. The recent accumulation of cotton yarn in stockpiles has increased concerns among all parties. Short-term Xinjiang processing enterprises have less hope of hedging and hedging, and the “unwinding” period has been lengthened. Therefore, it is urgent to continue to lower the purchase price of seed cotton, strictly control the quality of seed cotton (such as rejecting super-water and super-impure seed cotton), improve the quality of ginning, and sell through multiple channels. </p
