Cotton Market Is Slow To Start. Cotton Traders Are At A Loss.

Recently, the cotton market in the the Yellow River River Basin has started slowly, but its downturn is alarming. The spot market of the lint is also pessimistic. The main reason for the wait-and-see of the textile enterprises is that Zheng cotton futures are "down" and the hot rumors are coming out of the national cotton store.

In March 1st, a cotton grower named Liu Xing in Cangzhou, Hebei said that there was only one 400 type of cotton ginning plant in the area to restore the scale, but its low output was staggering.

"Relatively good seed cotton price is only 2.3-2.4 yuan / Jin, nearly 0.5 yuan / Jin before the Spring Festival."

Lao Liu said that he could not even get the cost of the price.

Last year, Lao Liu planted 2.7 mu of cotton and 1240 kg of Communist seed cotton, with an average yield of 458 Jin / mu.

The cost of planting cotton, plastic film, irrigation, fertilizer, pesticides, seeds, agricultural machinery and labor costs is as high as 1350 yuan / mu. After calculating, he lost 250 yuan / mu of cotton seed last year.

"Now the subsidy has not come down. If we pay 165 yuan per mu last year, we will surely lose money in 2015."

Lao Liu is very pessimistic. He thinks that the seed cotton is not only collected but also low, and the possibility of seed cotton falling in the first half of this year is very large. Cotton farmers should sell as early as possible.

Similar to seed cotton.

It's also pessimistic.

On the same day, Li, general manager of a 400 type ginning factory in Dongying, Shandong, said that after the Spring Festival, the spot price dropped by 400-500 yuan / ton. Taking their factory as an example, the current 3128 spot mainstream price is 12000 yuan / ton and 3127 level 11500 yuan / ton.

"Cost upside down is very serious."

He said that at present, the cost of lint 3128 is 12600-12700 yuan / ton, and the direct loss is 700 yuan / ton at current price. If the cost can not be sold in the short term, plus the cost of interest and storage, the loss will increase to 1000 yuan / ton.

At present, their factory still has more than 350 tons of cotton and is expected to lose more than 350 thousand yuan.

Recently, there is still a stock of ginning plants are very anxious inside.

A cotton trader in Liaocheng, Shandong, said

Basically can not sell, mainly downstream manufacturers wait and see, procurement is very negative.

The main reason for the wait-and-see of textile enterprises is that Zheng cotton futures are "down" and the hot rumors are coming out.

Besides cotton ginning plants, cotton merchants are also very nervous.

Mr. Yu specializes in broking Xinjiang cotton. According to him, the price fluctuation of Xinjiang cotton has dropped by more than 200 yuan / ton in recent years.

Even "good cotton" also fell unexpectedly. He said, "the smell of risk has been smelled".

He believes that in 2016, the domestic and foreign economic situation is not good, cotton is very difficult to turn over, especially now all textile enterprises only wait and see, do not buy the situation, let cotton traders are at a loss.

The rain is coming.

All kinds of gossip are flying all over the world. Electronic plates, cotton and upstream and downstream people are unstable. This adds to the pessimistic atmosphere of the market and continues to put pressure on cotton. It is expected that cotton will continue to decline in the short term.