Since the opening of new cotton after the Mid-Autumn Festival, the opening rate of new cotton in various places has increased slightly, but the increase in purchase volume has been limited. Supported by many factors, the purchase price of new cotton has increased to varying degrees compared with before the holiday. The specific reasons are analyzed as follows:
The number of cotton companies opening scales increased, boosting the market for new cotton. By mid-September, the amount of new cotton picked in various places further increased, but the weather was rainy during the festival, and the progress and sales of seed cotton were limited. After the Mid-Autumn Festival, the number of ginning factories opened in some areas increased, which played a certain supporting role in the price of new cotton, and the purchase price increased to varying degrees. Among them, the purchase price of seed cotton in Shandong is 3.05-3.25 yuan/jin, and the purchase price of individual manufacturers is 0.05 yuan/jin higher than before the holiday; the purchase price in Hebei is 3.05-3.15 yuan/jin, an increase of 0.05-0.10 yuan/jin than before the holiday; The purchase price in Hubei is 3.00-3.20 yuan/jin, which is 0.05 yuan/jin higher than before the holiday. Some newly opened scale manufacturers have increased their purchase prices to increase purchase volume.
The price at the opening scale is low, and cotton farmers are reluctant to sell at low prices. Affected by domestic and foreign factors, the lint cotton market is still not ideal during the transition period between the old and new years. In addition, the market supply is sufficient, and the listing price of new lint cotton is running at a low level. Due to poor operating profits, the opening scale price of cotton ginneries is low, with prices ranging from 2.90 to 3.05 yuan/jin in various places, a decrease of 0.60 to 0.75 yuan/jin from the same period last year, and much lower than the expectations of cotton farmers. In addition, cotton fields in some areas have experienced reduced production to varying degrees (in most areas of Hubei, the yield of seed cotton per mu is only 200-300 yuan/jin, a serious reduction in production), which has aggravated the reluctance of cotton farmers to sell. At present, although most ginning mills are cautious in purchasing, in order to speed up the turnover speed and purchase volume, some manufacturers have no choice but to raise the price within a controllable range.
The demand for lint cotton has improved, and manufacturers’ confidence has increased. Recently, the transaction status of reserve cotton has been good, and transaction prices have also increased to varying degrees, stimulating the spot market. Futures prices continued to rise after the holiday. Zheng Cotton’s main CF2001 contract reached a high of 13,285 yuan/ton on the 16th. Today (17th) stagflation fell back, but there is still a rebound trend, which is bullish for the spot market. The quotation price of newly processed lint cotton has been increased after the holiday. The ex-factory quotation of third-grade new lint cotton in Shandong is 12,300 yuan/ton, which is 100 yuan/ton higher than before the holiday. The ex-factory quotation of third-grade new lint cotton in Hebei region is 12,400 yuan/ton, which is higher than before the festival. 200 yuan/ton. Ginning mills in Hubei may only continue to purchase, but they will not quote prices for lint for the time being. They firmly believe that the lint market will improve in the future. The overall business confidence of ginning mills has improved slightly.
In summary, the increase in favorable factors for seed cotton has stimulated the confidence of ginners in raising prices after the holidays. However, the current purchase volume is still small, and the purchase price will be further adjusted in the future. </p
