Machine-picked seed cotton procurement situation in North Xinjiang

In early Sep, competition of new seed cotton for wadding (for civilian use) procurement was heard, starting from Marabishi County of Xinjiang, with prices at 9.5yuan/kg and cotton seed prices at 3.8yuan/kg, cotton costs at 18,800-19,200yuan/mt on theory. Later, seed cotton prices rose to 10.5-11yuan/kg. However, after the Mid-Autumn Festival (Sep 19-21), hand-picked seed cotton prices declined, and machine-picked seed cotton procurement kicked off. In Kuitun of North Xinjiang, small quantity of machine-picked seed cotton was procured at about 8.5yuan/kg, and cotton costs were about 19,200-19,600yuan/mt. We trace the machine-picked seed cotton procurement situation recently and sort out the development in North Xinjiang.

Source: China Fibre Inspection Bureau

The table shows the cotton arrivals and ginning situation in North Xinjiang last year. Obviously, 486 inspection institutions from nine regions of North Xinjiang took part in the notary-inspection last year, with a quantity of 2.80 million tons in total. Tarbagatay Prefecture took the largest proportion of 21.55%, with a quantity of 603.5kt, followed by Shihezi and Kuitun, with a proportion of 16.27% and 15.33%. Turpan and Hami took the last places, with a proportion of only 3.77% and a quantity of 32kt and 73.5kt respectively. Therefore, we mainly trace the nine regions.

Note: The table above only shows seed cotton procurement and prices in part of ginning factories in North Xinjiang, only for reference.

Tarbagatay Prefecture: procurement of new seed cotton is still limited, and procurement time is predicted to be different. It is understood that seed cotton prices are at 8.8yuan/kg in Shawan County on Sep 23, and some plants plan to purchase during National Day Holiday (Oct). The XPCC-origin (Xinjiang Production and Construction Corps) seed cotton may be mostly around Sep 25 and Sep 28. The region is relatively large, and the data tracked may not be representative.

Shihezi: some ginners procured small quantity of machine-picked seed cotton after the Mid-Autumn Festival, and prices were mostly at 8.4-8.5yuan/kg. No ginning yield and cotton seed prices were received, and may come out successively after Sep 25. The XPCC-origin seed cotton in this region is predicted to start to be procured around Sep 25 and Sep 28.

Kuitun, Ili Kazak Autonomous Prefecture: very limited of machine-picked seed cotton was heard to be procured and prices were at 8-9yuan/kg, mostly around 8.5yuan/kg. Ginning yield was around 41%-43%. Cotton seed prices were more mixed, at 3.2-3.5yuan/kg, mostly at 3.5yuan/kg. After Mid-Autumn Festival, cotton seed prices declined much to around 3.2yuan/kg. In addition, local XPCC-origin seed cotton has not started to be procured. The procurement was sparse in Kuitun, but developed slightly faster compared with the other regions in North Xinjiang.

Wujiaqu: the cotton in this region is mainly from the Sixth Division of XPCC. In order to ensure the quality, the procurement will be around Sep 25 and Sep 26.

Changji Hui Autonomous Prefecture: procurement was very limited, and will be around Sep 28. Ginners’buying indication is at 8-8.4yuan/kg, and the prices may be not less than 8yuan/kg, which is the lowest level of growers.

Bortala Mongol Autonomous Prefecture: the procurement time may be late, but will be start successively before end Sep.

Karamay: Machine-picked seed cotton prices were heard at 8.6-8.7yuan/kg in this region, with ginning yield of 42-43%, and cotton seed prices were at 3.4-3.5yuan/kg. Sporadic hand-picked seed cotton was procured.

Hami: Hami belongs to East Xinjiang, corresponding, the weather condition is not favorable as regions in North Xinjiang. Picking is late, and procurement will be 10 days later in earliest, and purchasing quantity will be about tens to hundreds tons. The intensive picking will be around mid-Oct.

Turpan: no ginning factories were heard to procure seed cotton by now, and the procurement may be around Sep 25 and Sep 28.

Currently, most cotton crops in North Xinjiang are not mature and only small quantity of machine-picked seed cotton is procured. Some ginning factories procure for the purpose of machine debugging, so prices are relatively high, at 8.8yuan/kg and above, while most ginning factories will start to purchase before end Sep in North Xinjiang, and the mainstream prices may appear after the National Day holiday. Currently, ginners expect that seed cotton prices may be high first and then decrease, and their buying indication is below 8.5yuan/kg, mostly at 8-8.3yuan/kg. However, growers expect a higher price and are unwilling to sell below 8yuan/kg, which will be a battle later.