Seed cotton procurement condition in Xinjiang during the National Day holiday

1. Machine-picked seed cotton procurement condition in Xinjiang

Machine-picked seed cotton has started to be procured successively during the National Day holiday, but the purchasing volumes are not large in general and prices are mixed as growers are not eager to sell and many ginners are cautious to purchase. According to actual procurement condition, the machine-picked seed cotton prices are mainly at around 8yuan/kg with ginning yield of 40% currently, lowly at 7.5-7.85yuan/kg, highly at 8.2-8.3yuan/kg. Part of the prices above is the minimum-guaranteed settlement price. If based on the mainstream price of 8yuan/kg and cotton seed price of 3.1yuan/kg, the machine-picked cotton costs are around 18,600yuan/mt gross weight. However, the purchasing volumes remain limited currently, and the mainstream costs need to wait for the procurement in later period. Following is the corresponding costs based on the seed cotton prices.

2. Hand-picked seed cotton procurement condition in Xinjiang

During the holiday, the hand-picked seed cotton for wadding prices are mainly flat at 9.2-9.3yuan/kg in South Xinjiang, with ginning yield of 42-43%. The previous high level of 9.4-9.5yuan/kg is basically disappeared. Some prices of hand-picked seed cotton for spinning are low, at 8.9-9yuan/kg, with ginning yield of 42%, and the purchasing volumes are small. According to the feedback from ginners, the ginning costs are around 19,300yuan/mt gross weight based on seed cotton prices of 9.25yuan/kg (ginning yield at 42%). But as the sales of cotton for wadding are unfavorable this year, the selling price has dropped to 19,000yuan/mt during the holiday, down from 19,400-19,600yuan/mt in late Sep. Ginners have sold with deficits.

In general, due to unfavorable sales, selling prices of cotton for wadding and hand-picked seed cotton prices have dropped somewhat during the National Day holiday, and for machine-picked seed cotton, prices are mixed, mainly at 8yuan/kg, lowly at 7.5-7.85yuan/kg, highly at 8-8.3yuan/kg. In terms of the seed cotton procurement, procurement may gradually meet resistance when ZCE major cotton contract reaches 18,000yuan/mt and above, but as growers are unwilling to sell and ginners are cautious to purchase, the major procurement costs of machine-picked cotton remain unclear. Keep an eye on the procurement condition later.