Falling Cotton Prices Cause Cotton Farmers Not to Pick Cotton Positively

Shandong is an important cotton producing area in the interior of China. Although the cotton yield has increased this year, the cotton farmers may eventually increase their production without increasing revenue, taking into account the cotton price and the cost. According to Ma Junkai, a cotton expert from the Cotton Association of Dezhou City, Shandong Province, some farmers in Binzhou and Dongying in Shandong Province have already experienced the phenomenon of not picking the last cotton, mainly farmers in some rented land.

It is understood that the cost of planting cotton at the rented land in the above-mentioned areas is 500 yuan/mu this year, and the income after deducting the direct investment cost of chemical fertilizers and pesticides per mu of cotton is 1,200 yuan, and then the lease fee and labor cost (600 yuan/yuan) are eliminated. About a mu.) Farmers who hire cotton to rent land are not worthwhile. It's better to let the cotton rot in the ground. "At present, the cost of employing people in Binzhou and Dongying in Shandong Province is 1.3 yuan per catty, which is 0.7-0.8 yuan more per kilogram in other areas." Ma Junkai said that if the province of Shandong's downstream cotton industry is accumulated - Wucheng County The purchase price of seed cotton is 3.8-3.9 yuan/kg, and that of seed cotton in Dezhou is 470 kg. There is no reason for cotton farmers to hire cotton.

This year, the overall increase in China's cotton production, especially the increase in cotton production in Xinjiang is significant. However, in the Xinjiang region, many large-scale planters and farms have also encountered “difficulties in picking flowers”.

According to Wanda ** Zhang Wenmin, as of now, Xinjiang cotton has been picked 70% - 80%, but due to weak downstream demand, coupled with the recent northern to Xinjiang appeared moderate to heavy snow, cotton farmers picking seed cotton is not easy to sell, let cotton farmers do The difficulty is that it is harder to find flower pickers. The cost of local defloration has risen to 1.5 yuan/kg.

It is understood that more than 23 million mu of cotton are planted in Xinjiang this year, and the northern area accounts for 40% to 45%. Because of the difficulty in picking flowers, the Xinjiang Construction Corps has to adopt mechanical picking, and the quality of machine picking cotton is not comparable. "Cotton picking", coupled with the long-term downturn in cotton prices, many local cotton farmers, farms, etc. have long had little hope of heading, and the enthusiasm for picking flowers is not high, and the progress of the sale is much slower than in previous years. At present, the purchase price of Xinjiang Grade 4 seed cotton is 3.75-3.9 yuan/kg (clothing points 40), and the production situation is not optimistic.

On Feb. 18, Zheng Cotton’s main contract price for the 1205 contract was 34,500 yuan per ton, and yesterday the contract's closing price was only 20,335 yuan per ton, less than 9 months, with a cumulative decrease of 14,165 yuan per ton. During the same period, the cumulative fall in domestic spot cotton prices was even greater. Like cotton farmers, many players in the cotton industry chain have suffered.

From the perspective of the cotton downstream industry, the downturn in the cotton market may still remain for some time. “Wang Xiaoyan, a textile enterprise business manager, said that although large downstream textile companies have their own core products and export agents, factory orders are fairly stable, such as Youngor (10.48, -0.11, -1.04%), Dongguan Fuan, Foshan Domestic enterprises such as DaDa are prosperous in domestic sales, but small textile companies in the middle of the industrial chain are in a difficult position and face high capital costs and high pressures in terms of inventory management and capital management requirements. In addition, the pressure on the mills is also relatively high. Due to the high inventory of cloth and the lack of transferability, the days of these small businesses are not very good. “

From the perspective of the recently concluded Canton Fair, there were only a few African customers and almost no orders from Europe and the United States.