How Does Cotton Market Run After The Cancellation Of Cotton Purchase And Storage Policy?

In June 19th, the Henan branch of the agricultural development bank learned that, as of now, the bank has put the market on the market this year.

The purchase of loans was 730 million yuan, the acquisition of 1 million 217 thousand and 700 cotton (1 pounds =100 Jin), each purchase price 658 yuan.

Expert analysis, as the first year after the abolition of the cotton purchase and storage policy, from 2014 to 2015, the impact of market acquisition has been highlighted, and is pushing the country.

Back to the right track.

From 2010 to 2011, China's cotton market fluctuated sharply.

The state has implemented cotton temporary purchase and storage policy for three consecutive years, and the domestic cotton price has been guaranteed. However, with the exception of the outer cotton, the domestic and foreign cotton prices at every five thousand or six thousand yuan per ton are also bad.

The competitiveness of enterprises has dropped sharply.

In 2014, the state announced that the cotton purchase and storage policy was no longer implemented, which meant that cotton prices would be liberalized and be in line with international standards.

"This is a great benefit to cotton spinning enterprises, and the era of having to buy" high priced cotton "will end.

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As the cost of such industries gradually decreases, consumers will also buy better quality cotton textile products.

Experts said that since the implementation of the new deal, the market price formation mechanism based on market supply and demand in China's cotton field has begun to show, and the cotton market has gradually entered the stage of stabilization.

The head of the Henan branch of the agriculture development bank said that the cotton sales in the province are keeping normal, but the market is beginning to differentiate due to the uneven quality of cotton.

High quality cotton resources are scarce, prices are rising, the market of poor quality cotton is full, and prices are chaotic.

Overall, the price of cotton in the mainland is around 12500 yuan / ton, and the price of some cotton is as low as 12000 yuan / ton. The price of grade 328 Xinjiang cotton is between 13500~13700 yuan / ton, while the United States cotton still maintains 11000 yuan / ton, which has basically dropped to a low point, and the gap between domestic cotton prices and foreign cotton prices has been further narrowed.