Spot cotton market in Xinjiang is weak

In the past week, the weakness of ICE, Zhengzhou, and the spot market of cotton contrasted sharply with the buoyancy of the US and Chinese stock markets. Although the domestic prices of 2129 and 3128 Xinjiang cotton remained at 13800-14000 yuan/ton, 13500-13700 yuan/ T, but the actual transaction price still has 100 yuan / ton for the decline. In order to return the funds to the banks as soon as possible, some processing enterprises in southern Xinjiang that had been reluctant to sell them in April and May had to “flesh” their shipments. The overall downstream market was bearish and the pessimistic atmosphere had increased. From the results of investigation by various agencies, by the end of May, the overall cotton sales progress in Xinjiang has reached more than 65%. Northern Xinjiang is significantly higher than southern Xinjiang, localities are faster than the Bingtuan, and hand picking cotton is stronger than machine-picking cotton.

In Aksu, Korla and other places, a small number of cotton companies are still betting on the cotton market in May-September. On the one hand, they actively raise funds, or purchase or ask for high-grade hand-picked cotton; on the other hand, they pay high attention to the state , Issue additional news on cotton import quotas in order to adjust sales strategies in a timely manner.

Some cotton mills in Jiangsu, Shandong, Henan, and other places stated that although Xinjiang's hand-picked cotton has the disadvantages of “three-wire” weight, poor consistency of fiber length and strength, and large impurities, it is relatively poor compared to SM, GM-grade Australian cotton. In terms of US cotton (for customs clearance, quotations), there is still a difference of 1,500 yuan/ton or more. As long as there is no agreement in the contract for orders to use "US cotton or Australian cotton" with cotton, most textile companies without quotas use Xinjiang hands. Cotton picking, machine harvested cotton, and real estate cotton use US cotton and Xinjiang machine-picking cotton to reduce the use of high-priced Australian cotton.

It is understood that after 2014, cotton processing companies directly docked with downstream customers to improve processing quality, reduce the "three wires" and increase the elimination of impurities. As a matter of urgency, many ginning factories in Aksu, Bachu and other places plan to use the "three-wire" cleaning machine. Seed cotton cleaning machines and other equipment to meet the quality needs of cotton mills.