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Cotton Prices Fell By &Nbsp; Clothing Prices Were Expensive.

2011/12/28 17:01:00 16

"My winter clothes this year basically depend on online shopping."

Hefei citizen Chen complained that this year

Winter clothes

It's very expensive.

At the same time, the provincial Price Bureau's monitoring data show that since March of this year, cotton purchase prices in our province have continued to decline.

On the one hand, the price of cotton is falling. On the one hand, the price of clothing is rising. What is the matter?


Phenomenon: Cotton cheap clothes are expensive.


Unlike cotton prices rose last year, since March of this year

cotton

Buy

Price

Continued decline. Although the purchase price of cotton gradually stabilized after the start of the provisional reserve plan in early September, it remained low.


According to the monitoring data of the provincial Price Bureau, in December 20th, the average purchase price of seed cotton (three level standard) was 4.08 yuan /500 grams, which was 30.38% lower than the highest price in the year.


In early September, it dropped by 5.99% compared with the start of storage and purchase plan.


However, the clothing prices of some shopping malls in the provincial capital are higher than in previous years.

"Last night I went shopping in the mall, the cheapest female down jacket was 999 yuan."

Miss Yao told reporters that her boyfriend looked at a brand down jacket with a price tag of 1690 yuan, and the price of the brand down jacket was around 1000 yuan in previous years.


Analysis: cotton production prices fall


Wangjiang and Wuwei are the major cotton producing counties in our province.

According to the Provincial Bureau of price survey, the quality of seed cotton is relatively good and production is increased this year. The average cotton planting area and per mu yield in two counties are 5.92% and 8.70% higher than that of last year.

The increase in supply has led to a fall in prices.

Jiang Xingchun, an analyst at state yuan Hai Qin futures, said that the situation of global cotton production has improved markedly this year, stimulated by the sharp rise in cotton prices last year.

The provincial Price Bureau survey data show that the cotton planting area in our province is expected to reach 5 million 400 thousand mu, an increase of 4.65% over the same period, with an estimated output of 380 thousand tons, an increase of 20.25% over the same period last year.


Despite the bumper harvest of cotton, demand is falling.

Provincial Price Bureau analysis, due to the impact of the European debt crisis and the global economic downturn, the demand for cotton consumption this year has declined.

And because of the sharp rise in cotton prices last year, the state has intensified its efforts to combat speculation in cotton this year, and domestic and foreign idle funds have been evacuated.


Other costs rise.


Cotton prices have fallen and clothing prices have risen. Jiang Xingchun, an analyst at the national yuan Hai Qin futures company, said: "the rising cost of raw materials and labor costs has driven up the price of clothing."

He said cotton is only one of the costs of the clothing industry, and cotton prices do not determine the price of clothing.

Although cotton prices have fallen, human cost, pportation costs and marketing costs are rising this year, leading to higher clothing prices this year.


Forecast: cotton prices will rise again


The provincial price bureau predicts that the purchasing price of cotton has been at a low level and cotton farmers are reluctant to sell.

Analysts expect that cotton prices will stabilize in the near future under the support of the state's temporary purchasing and storage policy.

In view of the expected decline in planting area next year and a decrease in supply, the price of cotton may be on the rise.


Jiang Xingchun said that although the medium term cotton trend is cautiously optimistic, but in the long run, cotton will continue to maintain a low level of weak shocks.

He believes that the rise of cotton futures prices will depend highly on the total amount of purchase and acquisition of the state treasury and the trend of the global economy. If the cotton planting income is not high, the enthusiasm of cotton growers in the new year will not be high, and if the downstream consumption is not improving, it will be difficult to drive cotton prices.

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