In mid-October cotton experience “winter”

In mid-October, when the cotton picking, sell season, the cotton should have been in full swing. However, with fine weather in sharp contrast, cotton experience “winter”: Cotton prices continued to fall, the more cotton, and so the more disappointing, not corporate figures, cotton continued stalemate. Shouchu announced that the country 220,000 tons shore up the market, but the market is reflected in plain, the price has declined. A few days ago, as a result of financial turmoil has resulted in operational funds futures strand breaks, the world’s leading cotton Paul. Reinhardt, a subsidiary in the United States filed for bankruptcy protection. Other companies have contracted cotton front, cautious view of the city. Due to the uncertain economic outlook, the parties have been a market pessimism over.

Since the fall, most of China’s cotton fine weather is conducive to picking cotton drying, to speed up the progress of seed cotton picking. But by the environmental impact of the global economy, textile production and marketing business in the doldrums, cotton yarn sales volume decrease in prices, reduction in a row to receive lint prices, do not buy cotton, cotton price continued to fall. To make matters worse, fuel oil by oscillation affect the prices, prices continued to decline in cottonseed, cottonseed and even in some areas has fallen to 0.8 yuan / jin, the same period last year was down nearly 40. Cottonseed prices led to the acquisition costs, and poor sales of lint cotton, prices have fallen substantially increased the degree of loss of some enterprises, have reduced the purchase price, and some pre-Kai Cheng Enterprises suspension of the wait-and-see. In the face of the decrease in price, more farmers Hard Trading in a Dream, the acquisition of seed cotton market to continue to maintain a stalemate situation, to buy the same period last year progress has obviously slowed down. Last weekend, the standard grade seed cotton purchase price for the Mainland 2.7 yuan / jin, Xinjiang 2.53 yuan / jin, over the previous week, fell 1-8 cents.

Last week (October 13 -17), the domestic spot price of cotton continued to decline, continued to expand. For the stability of the domestic cotton market, to protect the interests of cotton growers, the state decided to Oct. 21-31 Shouchu 220,000 tons the year 2008 Xinjiang, Shouchu Treasury prices to the highest level as the standard 12,600 yuan / ton, in August than 13,400 yuan / ton (Library of Xinjiang) Shouchu the prices of 800 yuan. Due to limited Shouchu Xinjiang, the number of small and rumors for some time before the market reaction to this flat, prices continue to trend down. Spot cotton, electronic matching, Zhengzhou futures prices continued to decline. October 17, Chinese cotton price index (CC Index328 level) to 12,416 yuan / ton over the previous week, down 237 yuan / ton; cotton futures in Zhengzhou and electronic together in the near future contract prices were last down 105 yuan / ton and 550 yuan / Ton.

Over the same period, international cotton prices continue to market volatility. Previous week, the United States in September announced by the poor macroeconomic data, the market’s recession worries intensify the New York cotton futures contracts in the near future once the price fell below 50 cents / lb; Friday by the main producing areas in the United States yields decline the previous week, as well as exports A substantial increase in New York cotton futures trading across the board again, on October 17 in the near future contract prices over the previous week, rose 3.13 cents / lb. Due to the recent international cotton price greater than the rate of decline in the domestic, in-quota imports of cotton prices have obvious advantages. China on October 17 to replace imported cotton price index (FCIndex M-class) as 64.03 cents / lb, last down 2.53 cents / lb, according to the 1% tariff terms, equivalent to 11,202 yuan / ton, 1214 has been lower than the domestic market Yuan / ton; slip by quasi-tax basis, equivalent to the cost of imports of RMB 12,673 yuan / ton, 257 yuan higher than the domestic market / ton.