Xinjiang: Traders Intend To Purchase New Cotton Warehouse Receipts

According to some ginning factories and traders in southern Xinjiang, since September, the mainland textile enterprises and middlemen have made an increase in the price of hand picking cotton in southern Xinjiang in 2018/19, compared with that in August, especially the length 28-29mm, breaking strength 28cN/tex and above, and impurities below 2%.

According to the analysis of the industry, at the end of August, there were not many of the high quality machine picked cotton resources in Northern Xinjiang, such as "double 29, double 30", etc. (part of the warehouse receipts) were generated. Low grade, low strength, low horse value and high impurity machine picking cotton could not meet the needs of cotton mill matching cotton. In addition, the "double 28" and the following indicators of hand picked cotton and machine picked cotton prices continued to narrow, and the attraction of cotton enterprises increased.

From the survey, nearly half a month ago, Shandong, Henan, Hebei, Jiangsu, Zhejiang and other places involved cotton enterprises to investigate output in Xinjiang, find partners (non contracted ginning plants or joint acquisitions), and consult more and more regulatory libraries. Xinjiang seed cotton picking, processing and marketing work is about to start like a raging fire.

A trader in Jiangsu said that in order to purchase cotton linen as warehouse receipts in 2019/20, under the premise of sufficient funds, we should focus on Zheng cotton's "hedging or arbitrage" and expand the cotton business volume to more than 20 thousand tons under the premise of controllable risk. For the transfer of Xinjiang plateau, cotton companies believe that imported cotton is not easy to do. Not only the price of cotton is not superior to that of the country, and the non American cotton source is concentrated in the hands of several large traders. Two, the import quota is strictly controlled, and small and medium cotton traders are basically excluded.