Cotton Supply And Demand Imbalance Caused By Multiple Pushing Hands

It is understood that, despite the continuous shipment of state-owned cotton stores, but traders took over 45% of the amount of light, short term part of the cotton reserves will not be strong. This leads to the fact that the spinning enterprises that only use cotton can only passively follow the racket. High value cotton 。

"In the face of the impact of rising cotton prices on textile enterprises, the textile industry association of Henan province organized 34 textile and cotton enterprises in the province to convene a textile entrepreneur conference, and a related agreement has been formed and reported to the relevant departments of the state." In July 25th, Li Jifeng, Secretary General of Henan Textile Industry Association, told reporters.

Behind Henan Textile Association and textile enterprises, the cotton price has been rising for a period of time. Cotton yarn production in Henan province ranks second in the country. Cotton prices skyrocketing or irrational shocks have brought great impact on cotton textile industry in our province.

"All Price The rise and fall is the contradiction between supply and demand. At present, the cotton in the commercial circulation area is relatively small, and the national storage cotton is the largest source of replenish, while the national storage cotton is slow in the short term, and the quantity of the outgoing resources is insufficient, causing the current enterprises to seize the cotton resources and cause the cotton prices to skyrocket. Li Jifeng said.

It is understood that domestic cotton has import quota restrictions. Allocation quota For 892 thousand tons, when the cotton in the international market can not get in and the cotton resources in the commercial circulation are relatively small, enterprises will have a tense situation when buying cotton. At that time, the national cotton reserves will become the main channel to replenish cotton in the domestic market.

In March this year, the supply and demand of domestic cotton market began to tighten. In April, the national development and Reform Commission issued the "arrangements for the national cotton reserve rotation" to confirm that this year's national cotton storage and rotation business took place from May 3rd to August 31st.

"National storage cotton has another problem in the actual dumping process. The storage speed of national cotton stores is relatively slow, like squeezing toothpaste, and there are trade enterprises in the middle to rush to buy cotton resources, which causes the textile enterprises to buy cotton, but there is a shortage of cotton resources in the market. So from the initial low price, all the way up to the present price. A textile company in Zhengzhou told reporters.

During this process, over-the-counter capital speculation and traders hoarding goods have also become the drivers of cotton prices. For example, traders took about 45% of the reserve cotton, only to take the goods out of the Treasury to bet on the August market.

From the planting level, the cotton production price is expected to rise as well. According to the June report on the sowing area of cotton in China, the sowing area of cotton in the whole country was 43 million 851 thousand mu in 2016, a decrease of 7 million 337 thousand mu compared with that of the previous year, a decrease of 14.3%. Among them, the the Yellow River River Basin decreased by 24.7% compared to the same period last year, and the Yangtze River Basin decreased by 27.7% compared with the same period last year, and the northwest inland area decreased by 7% compared with the same period last year. In the main cotton producing areas of the mainland, the sowing area of the Yellow River and the Yangtze River Valley decreased again.