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Demand Is Weak, Prices Fall By Half &Nbsp; Cotton In Shandong Is Difficult To Store And Store.

2011/11/9 9:30:00 8

Cotton Price Chain In Shandong

Cotton prices fell from "peak" to "bottom" in a year.

Cotton was at the top of roller coaster in the same period last year.

Unginned cotton

The price is more than 7 yuan per catty, but today, "3.5 yuan per kilogram is not necessarily sold," because few people have bought it.

What is the cotton grower going through during the boom and fall?

industry chain

And what changes are taking place to make a special trip to Xiajin, a big cotton growing county.


Inland cotton that is difficult to collect and store


"Before the new cotton came down, our family just sold the Chen cotton which was last year, 4.12 yuan per catty, the price is not high, but now, the seed cotton price has dropped to three yuan, five or six cents a Jin......"

Recently, Xu Derong, who planted dozens of years of cotton in Zhang Zhai village, South County town of Xiajin County, told reporters that he had never seen such a strange cotton market since he jumped to a sharp drop this year.


In Xu Derong's impression, last year cotton "open market", seed cotton price was about 3.3 yuan per catty, and then it unexpectedly surged forward. In November, the highest price was over 7 yuan, and it maintained a longer time at 6 yuan a year ago. But this year, cotton prices have been going down all the way, and now they are back to the low price of around 3.5 yuan.

Xu Derong's family has about 27 mu of cotton, and now the harvest is basically over.

At Xu Derong's house, the reporter saw all the cotton catties, "not even a catty". Beside the neat cotton stacks, there were scattered piles of cotton that had not been opened for a long time.

"Cotton is not much longer this year, almost three or four, which can only be sold for one or two yuan a Jin."


Xu Derong said that in recent three years, cotton yield and quality have been decreasing year by year under the influence of weather.

"The year before last my cotton yield per mu was about 670 Jin, last year it was about 500 Jin, only 450 Jin this year.

Quality is also not good. In the past few years, many of our cotton can reach the three grade standard. Now it is generally five grade, even four level is very difficult to achieve.


It is the quality reason that makes it difficult for local cotton to enter the ranks of the state.


from

Order

Line up to spinning press


In Xiajin, there are hundreds of cotton processing and spinning enterprises. They are the main cotton producers in Xu Derong's hands. But at the moment, these "families" are already unable to protect themselves.


"Now you want to sell 3.5 yuan a kilogram, do not necessarily sell, no one at all."

Xu Derong's wife told reporters that the local cotton acquisition processing enterprises, ten of the eight have been discontinued, because the demand for downstream spinning enterprises have been greatly reduced.


Most of the workshops are operating normally in the Xiajin County rite textile limited company, but Zhang Dejiang, chairman of the board, told reporters that it is hard to work well now.

"Last year, our customers in Jiaodong, Weifang and Jiangsu and Zhejiang provinces were buying our products. The order was queued up. They had to pay a deposit in advance. Now it is really different. I still have three or four tons of stock left."

The demand for orders was once improved in September this year. "At that time, it was mainly due to seasonal changes, good cotton less, and autumn clothing is also accelerating the listing, but after September, the price of cotton has come down."


According to Zhang Dejiang's understanding, the downstream weaving and clothing enterprises had a high price last year, and many foreign orders were pferred to India and other Southeast Asian countries and regions. Although the price of downstream products has been greatly driven by cotton prices, the order has been hard to pull back.


For Zhang Dejiang, the quality of local cotton has been decreasing year by year. It also allows enterprises to gradually turn to other regions to buy cotton. "Many enterprises' cotton comes from Xinjiang and some even imported from abroad", which inevitably has an impact on the sales of local cotton.

{page_break}


Ma Junkai, Deputy Secretary General of Dezhou Cotton Association,


Cotton prices have basically bottomed out. Next year is likely to increase.


"The problem of cotton prices is mainly affected by supply and demand."

Yesterday, in an interview with our newspaper reporter, Ma Junkai, Deputy Secretary General of Dezhou Cotton Association, said that although Dezhou and Xiajin were slightly affected by the situation of cotton and cotton, their output and quality had been affected to a certain extent. But from the whole country and even the whole world, this year can still be counted as a bumper harvest year for cotton, and the overall supply of cotton is not short.


At the same time, affected by the economic fluctuations in Europe and the United States, the order of cotton products has been reduced, and in India and other Southeast Asian countries, the order to China has been even less. This is also an important reason for the decline of cotton prices. In fact, this market is not very recent.


Ma Junkai said that if cotton prices continue to decline, the cotton planting area in Dezhou will probably drop from 1 million 600 thousand acres to 1 million 300 thousand acres next year.

"If that's the case, then the price of cotton will be very high next year, even though the amplitude is not good enough."


Ma Junkai analysis, although the Dezhou area is mainly composed of grade four and five grade cotton, which is not completely matched with the national storage and storage standard. "The total amount of 250 thousand tons of cotton has been collected and sold in the whole country, and the Shandong area has only sold 2910 tons, accounting for 1.16%." however, from the national perspective, the "bottom up" of the state has played a certain role in supporting cotton prices. So now, cotton prices have basically bottomed out, and there is little room for further decline.

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