In January 3rd, the national cotton market monitoring system, Hebei Hengshui monitoring station, conducted regular weekly surveys on the current proportion of seed cotton sale, price and cotton farmers' mentality in Jizhou district. It was found that both local cotton seed purchase and cottonseed sale prices remained stable in recent years, and at the same time, the local cotton enterprises quietly increased the number of acquisitions when the price of zhengmian futures rose.
Local cotton enterprises 3 seed cotton purchase price 3.23-3.25 yuan / Jin, required a 39% lint percentage, moisture regain 10%, according to this standard lint each increase or decrease 1% price corresponding adjustment of 0.05 yuan / kg, and December 26, 2019 (last week's same period) is flat, the seed cotton purchase price has slightly higher than the same period last year.
Due to the need to cash in before the Spring Festival of 2020, the enthusiasm of local cotton growers to sell cotton has been increasing continuously. What the local cotton enterprises did not expect was that the price of Zhengmei futures continued to rise in recent years, which also ignited their enthusiasm for participating in futures and hedging, and encouraged cotton enterprises to increase the number of seed cotton acquisitions. During the new year's day in 2020, the number of local cotton enterprises purchasing more than 100 thousand jin, increased by nearly 40% compared with the same period last week. In addition, some cotton enterprises said they will pay close attention to the future market trend. If futures prices rise again, they will slightly raise the purchase price of seed cotton and deal with it in the short term.