“Cotton seeds are sold better this year than in previous years, and the cotton planting area in Xinjiang is expected to increase.” Yan Youfa, general manager of Xinjiang Yanshi Dehai Agricultural Science and Technology Co., Ltd., told reporters that thanks to good planting returns in previous years, Xinjiang cotton farmers are more enthusiastic about planting this year.
The results of a 2022 cotton planting intention survey recently conducted by relevant agencies among 2,182 designated farmers across the country show that the country’s cotton planting intention area this year is 43.176 million acres, a year-on-year decrease of 0.2%, and the decline is 0.2 percentage points smaller than the previous period. In terms of regions, the intended area in Xinjiang increased by 2% year-on-year, an increase of 1.4 percentage points from the previous period; the intended area in the Yellow River Basin and the Yangtze River Basin decreased by 18.9% and 9.6% year-on-year, an increase of 2.5 and 7.6 percentage points from the previous period respectively. Judging from the psychology of cotton farmers in the mainland and Xinjiang, the enthusiasm of cotton farmers in the mainland continues to decline due to factors such as low comparative returns and rising prices of agricultural inputs.
Yan Youfa told reporters that as the temperature gradually rises, preparations for farming in Xinjiang’s cotton areas have begun. Cotton farmers are confident in planting cotton. It is estimated that the cotton planting area this year will be 37.57 million acres. At present, spring irrigation in the cotton areas of southern Xinjiang has been basically completed, and the prices of agricultural inputs such as cotton seeds, mulch films, and drip irrigation tapes used for spring sowing are stable. However, land transfer costs increased by 400-800 yuan/mu compared with last year, fertilizers increased by 120-150 yuan/mu, pesticides increased by 30-50 yuan/mu, water fees increased by about 30 yuan/mu, and labor costs increased by 50 yuan. /mu.
Sister Zhu and her son, who are growing cotton on a parcel of land in Hutubi County, Xinjiang, have been busy in the fields recently. Sister Zhu told reporters that although the land fee has increased a lot this year and the price of urea and other agricultural inputs is not cheap, cotton prices are expected to be relatively optimistic. Her family’s cotton planting area will expand to 7,000 acres this year.
According to Sister Zhu, in recent years, Xinjiang’s cotton policy has been relatively stable. Coupled with the lack of natural disasters, cotton has grown well and yields are high. The income of cotton farmers has always been relatively ideal, and cotton planting has become the main income of many local farmers. source. It is also understood that Xinjiang cotton prices have shown an obvious trend of stability and rising since 2019, reaching a historical high in 2021, and are still high at present. Therefore, Xinjiang cotton farmers generally expect that their income from cotton planting this year will still be relatively optimistic, and their enthusiasm for planting is high.
Lao Yang, who is engaged in cotton trading in Zhengzhou City, Henan Province, told reporters that after new cotton came on the market in previous years, there has been a “cash-out situation” in the cotton futures spot market, that is, ginners, traders, etc. have achieved sales targets at the same price. However, the processing cost of lint last year was high, and the price of cotton has not risen to the ideal price expected by the market. As a result, the “cash-out situation” could not be successfully completed, and the trend of cotton prices was Repeatedly. First, if the price is slightly higher, there will be ginning mills or traders to ship, resulting in greater pressure on price increases. Second, if the price is slightly lower, there will be procurement by textile mills, etc., resulting in the market price not being able to “drop through”, the market being unable to complete the “resource reorganization” process, and being unable to eliminate some market entities with small operating scales and high financial pressure.
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