With the large-scale planting of machine-picked cotton in Xinjiang, the level of mechanization in Xinjiang continues to improve, and the progress of seed cotton harvesting has further accelerated. As mid-November approaches, this year’s cotton picking is coming to an end, but lint stocks in ginning companies are continuing to accumulate. According to the current situation, the sales enthusiasm for new lint cotton is still not high, and the pressure on the cotton market may not be relieved in a short time.
According to survey data from the National Cotton Market Monitoring System, as of November 6, 2020, the national new cotton picking progress was 91.9%, a year-on-year increase of 1.9 percentage points, and an increase of 5.2 percentage points from the average of the past four years. Among them, the picking progress in Xinjiang was 92.6%; the national sales rate was 90.9%, an increase of 2.3 percentage points year-on-year and 7.7 percentage points higher than the average of the past four years, of which the sales rate in Xinjiang was 96.9%.
It can be seen from the data that not only the progress of new cotton picking has been significantly improved, but the overall delivery rate has also increased significantly. The reasons for this may be found in the following aspects: First, after the increase in the proportion of cotton picked by planters, the efficiency of cotton picking in northern and southern Xinjiang has increased; second, with the increase in ginning production capacity in Xinjiang, under the situation of “more monks and less rice”, cotton companies are rushing to harvest raw materials, and new Enthusiasm for cotton purchasing has increased; third, the price of seed cotton has risen, and the cost of new cotton processing for ginning companies has increased; fourth, the future of the cotton market is unclear, and high inventory has increased operational risks for ginning companies.
As we all know, the cotton textile industry chain is long. This year, the upstream is short and fast in harvesting and processing. Whether the middle and downstream can achieve smooth sales and even final digestion, the smooth transmission of this process has become the key. According to feedback from cotton-distributing enterprises in Xinjiang, currently no new cotton from enterprises in southern Xinjiang has been sold, and a large number of enterprises are still in the acquisition and processing stage. In northern Xinjiang, acquisitions have basically ended, but many enterprises are still in the processing stage. Looking at the current market, the epidemic situation in European and American countries has worsened, and country closures and customs closures have continued, which may have another impact on cotton demand in the later period. However, global inventories are high, domestic new cotton is concentrated on the market, and the loose situation on the supply side remains unchanged. The cotton market may still be Pressure operation. </p
