Cotton linter moving upward on hiking cottonseed

Cottonseed market becomes stronger with prices rising fast recently and staying at high level in recent years. Cotton linter producers supported by cost also quote firmly with prices moving upward.

1. Cottonseed price increases rapidly

Cottonseed producers become reluctant sellers with tightening supply and prices keep rising. Coupled with continued increase of soybean oil, palm oil and soybean meal futures, cottonseed oil and cotton dreg also follows up, boosting the enthusiasm for cottonseed procurement. Cottonseed oil plants in Chinese mainland mainly purchase cottonseed from Xinjiang and prices generally increase with strong momentum. Now cottonseed price in Xinjiang is around 3,000yuan/mt and Xinjiang-origin cottonseed is at 3,520-3,560yuan/mt in Shandong and Hebei. The price in Chinese mainland is at 3,340-3,400yuan/mt.

2. Cotton linter price keeps firm

Cottonseed price now hovers at high level and there is rising cost of cottonseed oil plants, so cotton linter cost is strongly bolstered. At the same time, cottonseed oil plants are not running with high operating rates and cotton linter output is limited, so producers become more eager to quote firmly with prices moving up. Cotton linter for industry and food-grade refined cotton in Chinese mainland is respectively at 4,800yuan/mt and 5,100yuan/mt.

Cottonseed market has gradually stabilized and climbed up since Apr and has been generally strong after mid-Apr. Shandong and Hebei-based cottonseed oil plants mainly procure cottonseed from Xinjiang with massive produces being arrived around the Labor Day holiday. The price rises fast recently and it keeps firm at high level with tightening supply. Cotton linter producers with stronger cost support also quote firmly, but the increment of price is restrained by limited trades.