The market price of cotton is lower than the reserve price.

Editor:桐乡市鑫宝莱纺织有限公司 │ Release Time:2018-12-14 

Despite the unfavorable factors such as a large increase in inventories, a sluggish textile industry, and a high level of internal and external cotton prices, under the support of the national temporary storage policy, the overall operation of the cotton market in 2012-2013 cotton year was relatively stable, and no such phenomenon was found. . This is what the reporter recently learned from the China Agricultural Development Bank.

This year, the state continues to implement the temporary cotton purchase and storage policy linked to the purchase price. The purchase price is 20,400 yuan / ton, an increase of 600 yuan per ton over the previous year, corresponding to an increase of about 0.1 yuan per kilogram of seed cotton purchase price. Judging from the purchase price, the current three-level flower in the market is basically 4 yuan - 4.2 yuan / kg, Xinjiang is slightly higher. Cotton farmers have a certain profit margin for selling at this price.

From the perspective of the acquisition progress, the picking progress was basically the same as that of the previous year, but the progress of the sales was faster than in previous years. The national cotton purchase progress was about 77%, an increase of about 5 percentage points year-on-year. From the acquisition of agricultural issuance loan enterprises, as of the end of November, the Agricultural Development Bank issued a total of 71.3 billion yuan of cotton purchase loans, an increase of 13.9 billion yuan year-on-year, supporting enterprises to purchase 66.67 million tons of lint, an increase of 15.76 million.

The reporter learned that this year's cotton market has different characteristics from the past. Due to the low profit margin of cotton purchase and sales enterprises in the past two years, this year's social funds entered the market cautiously, and the agricultural development policy loans became the main source of cotton purchase funds. As the market price is lower than the temporary storage price, the temporary storage becomes the main sales channel. The current market price is about 1,500 yuan / ton lower than the price of temporary reserves. In addition, the gap between domestic and foreign cotton prices has also widened. At present, the price of foreign cotton is 5,000 yuan/ton lower than the domestic cotton market price, which is about 6,500 yuan/ton lower than the national temporary storage price. Higher domestic cotton prices have a significant effect on protecting the interests of cotton farmers. However, in the long run, the spread between domestic and foreign prices will have a negative impact on the entire cotton industry.

Insiders analyzed that the current status of the cotton industry has brought some adverse effects to the security of credit funds. For example, the cotton issued by the Agricultural Development Loan Support Enterprise according to the national temporary storage price, if it does not meet the quality of the deposit and does not meet the storage time requirements, it will not be able to be stored, the credit funds will face greater market price risk. In addition, the risks of inventory supervision and the operation of textile enterprises will also affect the security of credit funds.