Why Do Cotton Companies Hesitate To Scale?

Since September, the cotton fields have been

Picking work began in succession.

Though, at the beginning of the month

It was predicted that starting from the middle and late 9 months, cotton seed in the mainland would begin to increase. However, due to the current factors affecting seed cotton prices, such as weather quality, the quality of cotton in the mainland part of the affected areas is expected to decline, the price of cottonseed will have a downward trend, the new "Regulations on pfinite management" or the cost of lint road pportation will be affected, and in 2017,

It is expected to restrict the price of new flowers and so on.

At present, the acquisition work of cotton processing enterprises is relatively cautious, and cotton farmers are reluctant to sell emotions. After the Mid Autumn Festival, cotton purchasing is still not booming. It is expected that a large-scale purchase will be postponed to national day.

Recently, most cotton areas in China have fine weather and adequate sunshine, which is very conducive to cotton picking.

At present, with the approaching of national day, cotton picking progress is speeding up.

However, at present, there are few cotton enterprises in all cotton producing areas. Why are cotton companies reluctant to scale up?

First, the purchase price of cotton in various places is 3.25-3.52 yuan / Jin, and the picking progress in some areas is nearly half.

At present, the price of cotton purchase and the expected price of cotton farmers are 4.5 yuan / Jin and the gap is too large. The market will be in a stalemate. In addition to the price, it is the busiest time for farm work. The peak sale of seed cotton is expected to be in mid 10.

Two is from the current market supply, new cotton temporarily difficult to increment.

At present, downstream textile enterprises and traders are still concentrating on the auction of reserve cotton, although the demand for terminal textile enterprises is not as good as that of the same period last year, but the traditional peak season has increased the intensity of the replenishment of textile enterprises.

Recently, the cotton market has been raised and the market mentality has been raised. In addition, the state reserve price has been drawing to a close.

At present, there are 2 working days for the national cotton store to go out, and the insufficient supply will continue to support the high turnover rate of national cotton reserves.

At present, cotton enterprises do not want to be generous in processing.

Three, before the Mid Autumn Festival, due to the higher cost of seed cotton and the relatively limited number of new stocks listed in the new season, the price of cottonseed at home was higher then, while cottonseed processing enterprises in some areas had higher willingness to purchase actively, and the price of cotton seeds before the mid autumn Festival was very high.

For example, the price of cotton seed in Shandong area to the factory cost was once the highest close to 1.75 yuan / Jin, and the local price was about 1.70 yuan / kg. The current price in Xinjiang area is between 1.35--1.45 yuan / Jin, and it also belongs to a higher level.

However, the price of cottonseed is so high that it is difficult for the cottonseed price to make profits. Moreover, there is a widespread phenomenon of high prices in the downstream enterprises, which inhibits the pace of acquisition by the squeezing enterprises and accelerates the listing of cotton seeds in the new season.

Among them, the purchase price of cotton seed in Shandong area dropped to 1.65 yuan / Jin, while the purchase price in Xinjiang area descended to 1.25--1.35 yuan / Jin.

Cotton seed prices fell sharply, cotton processing enterprises also dare not hastily purchase, waiting for cotton seed prices stable after the purchase of scale.

Four, at present, most of the cotton enterprises' acquisition funds have not yet been put in place. Cotton enterprises take into account the significant reduction in cotton this year. The longer the acquisition time is, the more they will lose. Most of them are prepared to postpone the settlement. We expect that the purchase price of seed cotton will fall back in early 10, so as to reduce the settlement price.

To sum up, at present, the market sentiment is strong. Cotton companies are still waiting for the new cotton concentrate to go public.