In 2016, the expectation of reserve cotton rotation is gradually increasing. There is no official clear opinion on when to rotate, but the only certainty is that 2016 will be a year for reserve cotton to show its talents. When a large number of reserve cotton appear in the market, it will undoubtedly have a great impact on domestic cotton sales in 2015.

According to the data of the national cotton market monitoring system, according to the estimated domestic cotton output of 5.216 million tons (predicted in November 2015), as of January 22, China had processed 4.586 million tons of lint and sold 2.278 million tons of lint; Among them, Xinjiang processed 3.55 million tons of lint and sold 1.494 million tons of lint, with a sales rate of more than 40%. Xinjiang cotton handed over such an answer sheet, and the result was not satisfactory. More than half of 2015 has passed. Due to the global economic situation in prison, the domestic textile and garment market has not warmed up with the arrival of the traditional peak production season. On the contrary, textile enterprises continue to reduce orders, and the sales work of cotton enterprises is in trouble.

 

According to the January report of the national cotton market monitoring system, the price of seed cotton has dropped significantly compared with that before New Year's day because of the recent sharp decline in the quality of seed cotton and the reduction of acquisition enterprises. At present, the mainstream price of hand picked cotton in Aksu, Kashgar, Korla and other places in southern Xinjiang is 5.20-5.30 yuan / kg (clothing percentage 38%, moisture regain 12%), and in the view of some textile enterprises, the purchase of cotton with a length of less than 27mm will not be considered at all.

 

In the face of the continuous decline of cotton prices, how will cotton enterprises deal with it? A mainland cotton enterprise said that at present, the cotton market continues to weaken, coupled with the imbalance of domestic cotton structure, the acquisition work has been basically stopped, especially for low-quality cotton, either reject it or lower the price. If the reserve cotton wheel comes out in the later stage, due to the long storage time of the reserve cotton, it will have a great impact on the color and other indicators. After the discount is increased, it will have a certain price advantage, which will bring pressure to cotton enterprises and traders.

 

A cotton enterprise in Xinjiang said that at present, the seed cotton in 2015 has basically been purchased and processed, mainly due to the later sales. In 2016, the export of reserve cotton will be normalized, which will bring a severe test to the enterprise's operation. At present, the only way for enterprises to avoid the expansion of losses is to reduce the price and sell lint as soon as possible.

 

With the Spring Festival approaching, in order to speed up the sales progress, some cotton enterprises have increased their efforts to reduce prices and sell goods. In mid January, the transaction price of Xinjiang cotton has been reduced by 100-200 yuan / ton compared with late December, while that of real estate cotton has been reduced by 200-300 yuan / ton. The loss of cotton processing enterprises is expanding.

 

From July to August 2015, the state rotated some reserve cotton as planned. Due to the constraints of cotton quality, price and other factors, the final transaction result was unsatisfactory. Please continue to pay attention to whether this situation will reverse in 2016 and how cotton enterprises will respond at that time.