Long-staple cotton: prices temporarily stabilized

It is understood that at present, only a handful of ginning factories in Xinjiang own long-staple cotton stocks. Since the price of long-staple cotton has been relatively stable this week, no significant improvement has been seen in taking the goods. On May 15, Xinjiang Awati County's 137 grade long-staple cotton Awati library for 2013/14 was priced at RMB 30000-31200/t. Some local ginning factories had a 237-level warehouse price of 30,300 yuan/ton, a 337-level price of 20,900-30000 yuan/ton, and a 236-level price of 29,200 yuan/ton. The overall quotation of the first and second divisions of the Corps is 600-800 yuan/ton higher than that of local enterprises, and the 137 price is still at 32,000 yuan/ton, while the 237 grade is also more than 31,000 yuan/ton. The market stock is small, and the company stays exposed. Very willing to price.

The mainland market is still trading lightly, and cotton traders have “price-reduced sales”. On the 14th, Shandong Aksu, a cotton trader in Xinjiang, produced 137 grades of long-staple cotton Jinan Kuti with a price of 31,600 yuan/ton, and 237 grades with 30,700–30,900 yuan/ton, which was flat compared with the 12th. The person in charge of the company pessimistically said: “The Mainland cotton has been difficult to sell. Since May, the company has only sold about 60 tons, with an average loss of RMB 2,100/ton. It has been lost and left and right are all losses.” Obtained quotas in April, ordering more positive cotton, especially better quality Australian cotton, American Pima cotton and so on. Therefore, in the long run, it is expected that the price of domestic long-term cotton still has room for downward adjustment. However, in the short-term, long-staple cotton temporarily stabilized.

Analysis of the industry, the reasons for stabilization are the following: First, the recent high cashmere cotton port, the number is small. On the 14th, the Qingdao cotton trader, Pima Cotton 2-2-46, immediately reported 200 cents/lb (equivalent to *** price of 32,800-33,000 yuan/ton). At present, inventory is mainly cleaned up, and new goods are few. Although the quality of Pima cotton in the United States is better, it is about 1000 yuan/ton higher than that of Xinjiang long-staple cotton, and the price advantage is not obvious. In addition, there is not much inventory, and some textile enterprises have a small amount to purchase Xinjiang long-staple cotton. Second, the planting area of ​​long-staple cotton is greatly reduced, and cotton seedlings are growing slowly. A few days ago, Xinjiang's spring planting work had all ended, and the area of ​​long-staple cotton had drastically decreased. The area of ​​Awati County, particularly known as the hometown of China's long-staple cotton, had dropped by around 30%. In addition, since May, the minimum temperature in Xinjiang's southern Xinjiang is only 8-11°C. Long-term accumulated low temperatures and poor soil moisture conditions cause serious cotton crop blight in some cotton fields. Individual cotton fields cause 15-20% dead seedlings, especially Long-staple cotton seedlings are “very injured”, and it is expected that Xinjiang's long-staple cotton production will continue to decline to about 20,000 tons in 2014.