How To Cope With The Increase Of Cotton Reserves In 2016

In 2016,

There is no official clear opinion on the timing of the coming round, but when it comes out, the only thing that is certain is that 2016 will be a year for cotton reserves to show their talents.

When a large number of cotton reserves come out of the market, it will undoubtedly be the 2015 domestic market.

Sales work has a great impact.

According to the national cotton market monitoring system data, according to the estimated output of domestic cotton 5 million 216 thousand tons (forecast in November 2015), as of January 22nd, the total processing of the whole country.

4 million 586 thousand tons, a total sales of 2 million 278 thousand tons of lint, of which 3 million 550 thousand tons of lint were processed in Xinjiang, and 1 million 494 thousand tons of lint were sold, with a sales rate of more than 40%.

The result is not satisfactory.

In 2015, more than half of them were in jail because of the global economic situation.

The clothing market did not get warmer with the arrival of the traditional peak season of production. Instead, the textile enterprises continued to reduce their orders, and the sales of cotton enterprises were in a predicament.

According to the national cotton market monitoring system January monthly report, because of the recent decline in seed cotton quality and acquisition companies, seed cotton prices have dropped significantly before New Year's day.

At present, the mainstream price of hand picking cotton in Akesu, Kashi and Korla in the southern Xinjiang is 5.20-5.30 yuan / kg (38% of lint and 12% of moisture regain).

The purchase is not considered when the length is below 27mm.

In the face of the continued decline in cotton prices, how will cotton enterprises respond? A cotton manufacturer in the mainland said that the cotton market continued to weaken, and the domestic cotton structure was in disorder, which basically stopped the acquisition work, especially for low quality cotton, either to reject or lower the price.

If the later cotton reserves come out, the storage time of the stored cotton will be longer, which will have a greater impact on the color and other indicators. It will have a certain price advantage after the premium is added, which brings pressure to Cotton Traders and traders.

A cotton trader in Xinjiang said that the seed cotton had basically been bought and processed in 2015, mainly after sale.

In 2016, the rotation of cotton reserves will be normalized, which will bring severe challenges to the operation of enterprises.

At present, the only way for enterprises to avoid loss expansion is to sell lint as soon as possible.

With the approaching of the Spring Festival, in order to speed up the sales progress, some cotton enterprises increased their prices and lost their goods. In the middle of January, the price of Xinjiang cotton was reduced by 100-200 yuan / ton compared with the late December, while the real estate cotton was reduced by 200-300 yuan / ton, and the deficit of cotton processing enterprises was expanding.

In 2015 7-8, some cotton reserves were pferred according to the plan, which was restricted by cotton quality and price.

Will this situation reverse in 2016?