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Turbulent cotton prices urgently need a rational market

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Turbulent cotton prices urgently need a rational market

  • Categories:Industry News
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  • Time of issue:2011-07-20 12:30
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Turbulent cotton prices urgently need a rational market

   [Webbing Web] In the past 3 months, cotton prices have experienced ups and downs again. What is different from last year is that this time cotton prices have "dived". The reporter found that the plunge in cotton prices has destroyed many farmers' desire to "reduce production but not reduce income", and subsequent industry chains such as spinning and weaving are also at a loss due to large fluctuations in cotton prices. , Discontinued. Ensuring cotton farmers' enthusiasm for planting and stabilizing cotton prices have become the unanimous wish of cotton farmers and textile enterprises.

    Cotton prices plunge cotton farmers "very injured"

    "The price of cotton is only 8 yuan per kilogram. I haven't sold it yet. When the price was high last year, it was 14 yuan per kilogram. Even 3 months ago, there was still 12 yuan per kilogram." For kilograms of cotton, Wang Jinshun, a villager in Shililipu Village, Shilipili Township, Gaotang County, Shandong Province, regretted it.

    In the main cotton-producing areas of Shandong, such as Dezhou and Liaocheng, Wang Jinshun is just one of many "injured" cotton farmers. According to a survey by Ma Junkai, deputy secretary general of the Dezhou Cotton Association, nearly 40% of cotton in farmers’ households in many areas of Texas is not sold, and some villages have about 80% of cotton stored.

    "Looking at cotton prices falling every day, cotton farmers' hearts are getting worse day by day." said Ding Chuncai, a cotton merchant in Linqing City, Liaocheng City. The average cotton farmer's family needs to earn less than 7,000 yuan a year, which is mainly for cotton. For farmers, it is really unbearable.

    The decline in futures prices is comparable to spot prices. The main contract of Zhengzhou Cotton Futures (Zheng Mian 1109) reached the highest price of 34,800 yuan per ton on February 17 this year, but fell to a recent low of 24,300 yuan per ton on May 12, which was more than 30% less than in March. US cotton futures prices also fell sharply, reaching 220 cents per pound in early March.

    In mid-May, cotton seedlings were exposed in cotton fields in many areas of Shandong. Although cotton seedlings are growing, cotton farmers are increasingly confused. "Last year, 60 acres of cotton were planted, but the result was a flood and a reduction in production, but the price in the early period was very good. It can be said that the reduction of production did not reduce the income. So this year, a variety of 10 acres were planted, but now the price has fallen sharply, and the decision has been wrong." The cotton farm horse factory in Mafang Village, Huangtai Township sighed.

    According to estimates by several farmers, the cost of cotton per mu is currently close to 1300 yuan (400 yuan for manpower, 500 yuan for agricultural resources, 400 yuan for rent), the average cotton yield is about 280 kg per mu, and the price of seed cotton can only reach 9.3 yuan per kg. The capital preservation can reach the same level as growing grain when it reaches 11 yuan per kilogram. The current cotton price has just been guaranteed. 

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