After soaring all the way, the price of Zheng cotton finally made a correction, falling nearly 1,000 points from its highest point. The fall in futures prices has cooled down the market, and the restless market has gradually calmed down, especially having a greater impact on the seed cotton purchase market.
Before the holiday, the seed cotton purchase market was relatively stable. However, as futures prices rose sharply, and coincided with the National Day holiday, foreign cotton prices continued to rise sharply, which led to a sudden change in the seed cotton market, with prices rising day by day. Even rising twice a day, market sentiment was completely ignited. The characteristic of the price increase of seed cotton this time is that it started very quickly. Within a week, the price has exceeded 11 yuan/kg, and the increase is fierce, and it has the momentum to continue to break new highs. The market gradually stabilized after the relevant national departments took timely and continuous measures to ensure supply and stabilize prices.
The rise in seed cotton prices this time is not unrelated to the fierce competition in Xinjiang’s procurement market. This year’s delay in the launch of seed cotton prices and the shortened acquisition period have intensified this competition. Some companies have raised prices to grab harvests. Adding fuel to the fire. Of course, the company itself has its own difficulties, and it is difficult to get out of the situation.
This Zheng Cotton correction has a greater impact on the spot market, mainly by stabilizing the market and making all parties calm. The current selling price of seed cotton is concentrated at 10.2-10.5 yuan/kg. Even so, the equivalent cost of lint cotton has also risen to 22,000 yuan/ton, which is also in a high range in the history of Zheng cotton. Since most of this year’s cotton is “egg roll cotton”, storage and transportation are relatively easy. At present, some cotton farmers continue to wait and see, hoping to wait for a higher price to sell, and some cotton farmers choose to settle for peace. After all, such a price is not good for cotton cultivation. The income has been relatively substantial. As the price of seed cotton falls, the stalemate between cotton farmers and ginning companies has also greatly eased.
As for how the market will operate in the later period, the author believes that it is too early to discuss whether the cotton price trend has changed. The new year has just begun, and there are still many risks in the entire market that have not yet been released, among which There are both favorable and unfavorable factors. At the current price, there is a high probability and space for cotton prices to rise or fall. For all parties in the industry chain, risk prevention and control is the first choice. Otherwise, if you lose your wife and lose your troops, you will lose more than you gain. </p
