Recently, the price of Xinjiang seed cotton has shown a trend of opening low and rising high, rising from 6.5 yuan/kg at the beginning of the scale to 7.5 yuan/kg. The increase is not small. What is the reason for the price increase?
A Xinjiang cotton trader told the author that first of all, the seed cotton sold now is generally processed into wadding, not the familiar textile cotton. Due to the special quality of cotton wadding and the difference in sales time, cotton that is first spun out from the bottom of the cotton plant is usually manually picked in advance. The cost of manual picking is higher than that of machine-picked cotton. Therefore, the weighing price of seed cotton and the sales price of processed lint cotton will be higher than that of machine-picked cotton. Currently, all hand-picked cotton is sold, and machine-picked cotton is not yet on the market, so the processed lint is used as wadding.
Secondly, in recent years, the popularity of machine-picked cotton in Xinjiang has continued to increase, and the output of machine-picked cotton has increased year by year, while the output of hand-picked cotton has continued to decline. As a result, on the premise that the demand for cotton cotton has been basically stable, the decrease in hand-picked cotton output has pushed up the selling price. The acquisition and processing time of cotton wool is short. In order to complete customer orders as soon as possible, ginning companies speed up the acquisition progress by increasing the price of seed cotton.
Finally, wadding is now very profitable, and companies are highly motivated to purchase and process it. It is understood that the contract price of ginning enterprises in southern Xinjiang is 16,800 yuan/ton, while the price of wadding sold in the mainland is 17,500 yuan/ton. After deducting related expenses and costs, the company still has a certain profit. Mainland cotton traders said that it is expected that the selling price of seed cotton may rise to 8.0 yuan/kg in the near future, which is equivalent to a lint price of nearly 17,000 yuan/ton (including finance, warehousing, restocking and other expenses). On the one hand, the price of cotton seeds has risen to 3.2 yuan/kg, which will drive up the price of seed cotton to a certain extent; on the other hand, Xinjiang cotton companies have good processing profits, and there is still room for price increases.