Chizhou, Anhui, Plunged Into The "Mire" Of Low Cotton Price And Hard Sell

Recently, Zheng cotton futures continued to rise after 2 points and went out of the new high in recent days, 1501 closing at 12910 yuan, rising 145 yuan, and other months contracts also rose a lot, but did not bring any improvement to the spot market in Chizhou, Anhui. The market sentiment remained strong, and the quoted price continued to fall, and the turnover was still not strong.

As of December 26th, the local level 3 is good.

For 13200 yuan / ton (pick up, take a ticket, cash settlement), 3 level is weak 12800 yuan / ton, 4 level is 12500 yuan / ton, compared with last week all fell 200 yuan / ton.

The quotation continued to fall, but it did not lift the enthusiasm of the textile mill at all. The textile factory was only interested in Xinjiang cotton. However, in order to maintain many years of business relations, it was only a 24 ton purchase of a small car, and the capital was slow to return. It would take about a month and a half to settle it.

Because

Low prices are hard to sell, and cotton companies have to reduce seed cotton purchase prices.

It is understood that, as of December 26th, the best 3 grade seed cotton purchase price in the region was 3.10 yuan / ton, and the lint percentage should be over 39.5%, the moisture content was less than 13%, the impurity was not more than 1.3%, and the price of 4 grade seed cotton was 3 yuan / Jin, compared with last week, it dropped 0.05 yuan / Jin, with the rejection of frost yellow cotton and stiff cotton.

Cotton merchants go to the countryside to purchase the highest

Also last week's 3 yuan / Jin dropped to 2.90 yuan / Jin.

Because of the drop in seed cotton prices, cotton farmers are reluctant to sell their spirits. According to a local cotton grower, her family has planted 5 mu of cotton this year, yielding about 600 Jin per mu (about 5 acres), which has about 3000 kg or so. So far, it has not been sold for one or two. The reason is that the seed cotton price is too low to sell for money, and ask when to sell it. She said that before the Spring Festival comes, if the price does not increase, then there is no way to sell it. Cotton is not well preserved as other crops.

Asked whether she will continue to grow cotton next year, she said, it is hard to say at the moment that the final cotton price this year plus the subsidies of the state will not be cost-effective.

This year, 5 acres of land 3000 kg of seed cotton, according to the current price of 2.90 yuan / jin to calculate, gross income is 8700 yuan, excluding 5 acres of land 2500 of the cost, net income and 6200 yuan (labor cost does not count), under normal circumstances, cotton farmers will be planted in cotton fields of rape and corn crops, small season large season cost.