Ginning Factory Sentiment Low, Sales Will Increase

According to the mainland Cotton Traders and textile enterprises, since the middle of September, the listing of Xinjiang cotton resources has increased in 2018/19. In order to recover funds and reduce pressure, a few cotton ginning factories have adopted the mode of "price reduction + bundling sale" to attract buyers to enter. For example, in September 20th, 19 batches of machine picked cotton (including 3.3-4.9%, 15 of which were double 28/ double 29) were only quoted at 12200 yuan / ton, which was significantly lower than the contract price between the spot and Zheng cotton. The key was to ask buyers to buy 19 batches of cotton at a time.

From the quotation of Cotton Traders and processing enterprises within the territory, the quotations of "double 29" hand picking cotton are higher than the "double 28" hand picking cotton 300-500 yuan / ton, and the high quality and high price is very outstanding. On the one hand, the "double 29" and above hand picked cotton stocks are low; on the other hand, most of the seed cotton purchased before mid October is for pre harvest flowers, and it is difficult to achieve the "double 29" index (horse value is larger than that of civilian cotton).

From the survey point of view, at present part of the southern Xinjiang cotton picking plant has a strong desire to lower sales price, but due to the large impurities, low fracture strength and the main storage in the southern Xinjiang regulatory library, the sales are not ideal. With the curtain opening of seed cotton purchase in 2019/20, the ginning factory's mood is pessimistic. A cotton trader in Bachu has said that as of now, there are still more than 1400 tons of machine picked cotton in Bachu for 2018/19 and Jiangsu Nantong. The purchase price of seed cotton is higher than that in Northern Xinjiang, and the purchase volume is expected to be reduced by more than 30% compared with that in 2018/19.