The Yellow River Basin Continues High Temperature: Cotton Market Or Encounter "Danger"

Since May, the continuous high temperature and hot weather in the the Yellow River River Basin have aggravated the drought.

It is understood that the overall cotton seedling production in Shandong, Henan and Hebei in recent years is slightly worse than that in the same period last year. The main reason is the continuous drought. First, the development of cotton plants is not good, and cotton seedling production is slow.

At present, cotton farmers alleviate soil drought by loosening soil, preserving soil moisture, strengthening field management, drip irrigation and replenishing water.

Two, there is an increasing trend of diseases and insect pests.

Quite a few

Feedback, the main pests and diseases at present are the aphids of Damping off and anthrax. Cotton farmers are removing pests by chemical control.

As drought worsens, cotton farmers everywhere are worried about cotton this year.

Although cotton is resistant to drought and alkali, excessive drought will have a greater negative impact on cotton production.

A cotton grower in Dongying, Shandong has introduced cotton fields to the coastal dry land and alkaline fields in recent two years. The main reason is that the cost is decreasing, but these fields are greatly affected by the natural environment.

It is understood that the cost of physical and chemical materials such as agricultural materials, machinery, labor and so on this year is slightly higher than that of last year. The cotton farmers' expectation price for seed cotton is 4.0-4.5 yuan / Jin this year, otherwise it will affect cotton growers' enthusiasm for cotton planting in the future.

But in the near future

Fluctuations in the market, difficult to move around the market, the market is generally worried about falling cotton prices.

According to a person in charge of the enterprise, the price of real estate cotton has risen slightly in recent years, but most of them are the sellers' raise price, and the attitude of downstream purchase is still cautious.

The market is generally worried that "cotton prices will increase steadily and remain unsettled".

First, the recent ICE cotton fell sharply, the early gains were basically recovered; the two is the recent decline in Zheng cotton's recent decline, is also eroding the previous increase; three is the wait-and-see attitude of the spot market, many manufacturers do not recognize the current cotton price, nor participate in the operation, just wait and see, which makes the enterprise bottom.

Four is the cotton yarn prices continue to fall. Recently, the price of domestic conventional yarn has dropped by 100-150 yuan / ton, which is still falling. Whether it can support the high cotton price is still unknown.

The spot price of Xinjiang cotton is relatively strong, especially in Xinjiang, where the price of local cotton prices is rising. However, the inquiry and delivery of mainland textile enterprises and traders began to cool down in early May.

It also weakened and entered the stage of psychological game and stalemate.

After the fall of Zheng cotton prices, warehouse receipts began to flow out of Zheng cotton market.

At present, the price of cotton and cotton has begun to return to the original trend after the sharp rise and fall, while the trend of Zheng cotton has returned to fundamentals. The reserve price of cotton reserves has risen sharply this week, but the average price of Xinjiang cotton and real estate cotton has not risen sharply.

According to the relevant regulations, in early 2017, the freight subsidy fund of Xinjiang's Xinjiang cotton yarn was changed from annual subsidy to quarterly subsidy. Enterprises could declare subsidy funds after completing the first quarter, and get the subsidy funds as soon as possible, which changed the situation that only second years before they could get the subsidy funds.

This regulation can not only effectively alleviate the problem of the high cost of cotton yarn production and sale in the local cotton spinning enterprises, but also greatly reduce the capital turnover pressure of enterprises, and also enhance the enthusiasm of enterprises to invest and build factories in Xinjiang.

From the textile industry industry management office of Xinjiang autonomous region, it is learned that the subsidy amount of 490 million yuan in the fourth quarter of 2016 and the subsidy amount of 690 million yuan in the first quarter of 2017 were distributed to the Ministry of finance of various counties and counties last month. All regions will allocate the subsidy funds to enterprises in time according to the relevant requirements, and it is expected to be released before the end of June.

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