1. Indian seed cotton is on the scale, and the purchase price momentum is stable.
New cotton is on the market in some areas of northern India. Compared with the beginning of the year, the purchase price still maintains a high momentum. The price of seed cotton is about 9,000-10,000 rupees/quintal. According to today’s exchange rate, the equivalent of RMB is about 7.740-8.860 yuan/kg ( 1 Indian rupee = 0.086 yuan, 1 quintal = 100 kilograms). After September, new cotton from the northwestern cotton region of India will gradually come on the market, and subsequent prices are questionable.
2. Sporadic harvesting of hand-picked cotton in Xinjiang
According to China Cotton Network, from a survey of cotton areas such as Maigaiti, Jiashi, Bachu and Aksu in Kashgar (seed cotton is harvested earliest in southern Xinjiang), so far, due to high accumulated temperatures and varying degrees of drought, some Dry land and early-maturing varieties are harvested in small quantities, but no ginneries open scales to purchase them; most farmers store them at home, waiting for unified sale at a later stage.
A hand-picked cotton processing company in Bachu County stated that this year due to high temperatures, low rainfall, and sufficient sunlight in July/August, cotton generally exhibits high color grade, high horse value, average breaking strength and average fiber length, making it suitable for cotton wadding. ; However, the high value of early and mid-term flowers may not be conducive to spinning cotton, so yarn mills and traders need to pay attention when purchasing.
3. A few ginning factories in Xinjiang may open scales in advance
According to a survey by China Cotton Network, the hand-picked cotton harvest in southern Xinjiang in 2022/23 will be about a week earlier than the previous year. Therefore, some ginners plan to test scales and trial rolling before mid-September.
On the one hand, cotton traders in Sichuan, Henan, Zhejiang and other places have already placed some orders. Although the number of contracts has decreased significantly compared with previous years, in order to maintain customers and maintain year-round cooperation, it is still necessary to ensure that no later than late October at the latest Shipping or delivery within territory;
On the other hand, due to the experience and lessons learned from the rush to buy in 2021/22 and the slow arrival of acquisition funds this year, it is expected that most ginning mills will mainly wait and see and slowly open the scale in the early stage;
In addition, the purchase price of seed cotton has been in a “low, high, low” trend in recent years (the highest purchase price occurred in October). Therefore, hand-picked cotton ginneries in Kashgar, Aksu and other places in southern Xinjiang may do the opposite. Not only will the opening period not be postponed, but it will be advanced to achieve the goals of “quick acquisition, quick processing, quick delivery, and quick payment”. Regarding the purchase price of hand-picked cotton with 38-39% lint content and 12% moisture content, ginners generally believe that the opening scale price may be between 6.0-6.50 yuan/kg. The price is too low, and farmers and cotton brokers will not sell it; The pricing is too high, and the profits of cotton processing companies are too low or even losing money.