On Friday (September 24), U.S. cotton futures rose sharply, with the main ICE U.S. cotton December contract closing at 95.99 cents/pound, up nearly 4%, reversing the previous weak and volatile situation. The futures price in the external market rebounded, and Zheng cotton surged upward in response. The night market finally closed at 17,900 yuan/ton, an increase of nearly 600 points. The rise in internal and external futures has once again ignited the market’s bullish enthusiasm, and the impact on the upcoming full-scale seed cotton market is self-evident.
Recently, the number of companies opening scales and purchasing companies in Xinjiang has been increasing, and the curtain of cotton purchasing in the new year has gradually begun. Machine-picked cotton has also begun to be picked. According to feedback from companies in Kuitun, Shihezi and other places in northern Xinjiang, the purchase price of machine-picked cotton from September 22 to 24 was 8.2-8.7 yuan/kg. However, after the surge in Zheng cotton, the wait-and-see mentality of cotton farmers became stronger again, and with the opening of weighing companies, The quantity has increased, the rush to acquire has begun to emerge, and some acquiring companies have continuously raised their acquisition prices. As of September 26, the purchase price has risen to 8.8-9.2 yuan/kg. Compared with last year, there are significantly more cotton brokers this year, and the atmosphere of price negotiation in cotton fields is fierce. The rise in the price of seed cotton is accompanied by an increase in the cost of lint cotton. Many heads of ginning companies said that if the price is higher than 9 yuan/kg, it is unimaginable how to sell it in the future.
A company in Aksu, southern Xinjiang, said that it had been busy purchasing hand-picked cotton for some time. In mid-September, the purchase price was raised from 9.8 to 11.2 yuan/kg, and was lowered to 11.2 yuan/kg during the Mid-Autumn Festival. The price is 9.5 yuan to 10.0 yuan/kg, but after only two days of purchase, it is difficult to receive any more seed cotton. Therefore, the price had to be raised again. During the survey, many cotton producers expressed helplessness and melancholy, and some even made it clear that they would scale back their acquisition plans and wait for further clarity on downstream demand and seed cotton prices before making any plans. If subsequent cotton consumption and smooth futures hedging are not considered, potential risks will inevitably be laid for subsequent operations. </p
