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State Brewing Measures To Support Cotton Market

2008/11/14 9:38:00 30

棉价8个月跌幅超40％国家酝酿出台更多扶持棉市措施

Due to the severe recession of downstream demand, domestic cotton prices have fallen by more than 40% in the 8 months since the high price in March.

In response, the relevant departments indicated that they would increase the number of cotton storage and purchase in a timely manner according to market demand, and will strictly control the import of cotton in 2009 and do a good job in balancing the total supply and demand of cotton in China.

It is understood that the state has issued three successive cotton purchase and storage policies this year.

In view of the fact that cotton prices continue to decline for three consecutive purchases, the head of the relevant departments of the state indicated through the China cotton information network that the country's determination to stabilize the cotton market and protect the interests of cotton farmers is unwavering. It will increase the quantity of cotton storage and purchase again and again according to the needs of the market. It is hoped that the majority of cotton farmers should not rush to sell seed cotton at low prices. At the same time, the state will strictly control the import of cotton in 2009, and do a good job in balancing the total supply and demand of cotton in China.

Statistics show that since the cotton futures price of the Zhengzhou Mercantile Exchange reached a high point of 17660 yuan per ton in March, the market price has declined all the way, but it has dropped to 10000 yuan / ton near the previous day, and has fallen by more than 40%.

The market generally believes that the textile industry is in recession and the relative reduction of demand is the main reason for the continuous decline of domestic and foreign cotton prices.

At present, 2/3 of the textile and garment enterprises in China are losing money or losing money.

This also makes cotton consumption stagnant.

Cotton farmers are "injured" in the face of the decline in cotton prices.

Since the beginning of this year, the cost of seed cotton has risen to about 3 yuan / kg due to the rising cost of seed cotton. Now the price of seed cotton has dropped to 2.3 yuan / Jin, and the price has fallen below the cost line of planting.

In order to stabilize the cotton market and protect the interests of cotton farmers, the state has issued three policies of purchasing and storage for the second time this year.

For the first time, in August 19th, in order to solve the problem of cotton sales in Xinjiang, the state decided to take part in Xinjiang cotton and rotate it into Xinjiang's cotton production in 2007, and the first batch was temporarily set to 150 thousand tons.

Since then, in October 16th, the state decided to open up and collect some Xinjiang cotton in the open market, with a quantity of 220 thousand tons, which is the highest price to be collected at 12600 yuan per ton, compared with the 13400 yuan / ton (Xinjiang Library) purchase and storage price in August, which dropped by 800 yuan.

Subsequently, in October 29th, the state decided to start the second round of storage and purchase, and will continue to store and store 1 million tons of cotton in the 2008 year at the price of 12600 yuan / ton.

As of November 12th, 182 thousand and 400 tons had been successfully collected.

In the face of the three country's aggressive and huge purchasing and storage behavior, cotton enterprises expected to reduce domestic cotton supply in the short term, balance the supply and demand structure of the market, and stimulate the price to rise again, but the domestic cotton market price showed a gradual downward trend.

In this regard, Jinpeng Futures Company vice president Yu Guo believes that the recent cotton prices have dropped nearly 10000 points below the threshold, cotton farmers market confidence needs to be restored.

Taking into account the sharp reduction in demand for cotton enterprises under the background of economic recession, and the cotton output in China will reach about 8 million tons this year, the relevant departments should further increase purchasing and storage efforts to help restore confidence in the market.