Analysis Of The Reasons For The Fall In Cotton Prices In 2011
Dezhou city of Shandong province is one of the key cotton producing areas in the country. In 2011, the cotton planting area decreased, production decreased and prices declined.
Since the launch of new cotton in September, cotton prices have been on the low side. The purchase price of grade four seed cotton is hovering between 3.60-4.50 yuan / jin (38%), and the average purchase price is about 3.80 yuan / kg, which is nearly half that of the previous year's highest price.
Cotton grower
Complaints were made and sales progress was slow. By the end of December 2011, the sales progress was less than 30%, which was about 30% lower than that in the normal year 60%.
The main reasons for the low cotton price in 2011 were: first, the world's cotton output reached a record 26 million 800 thousand tons in 2011, and the demand steadily decreased. At about 24 million 200 thousand tons, the supply exceeded demand, and the price of cotton fell sharply, which was lower than the domestic cotton price.
The two is domestic cotton harvest, demand and last year ratio slightly reduced, supply and demand gap narrowed.
Three, the European and American markets are not.
Prosperity
The demand for cotton textiles has been reduced, the foreign trade orders of domestic textile enterprises have been reduced, production and operation is difficult, and the price of cotton yarn is difficult to upgrade.
Four, domestic labor costs and raw material costs have risen, cotton textile costs have increased, international competitiveness has declined, and foreign trade orders have been pferred to some low-cost countries in Southeast Asia.
Five, since the launch of new cotton in 2011, the price of cottonseed has dropped sharply, which has been hovering around 0.85-1.30 yuan / Jin, with an average price of 1 yuan / kg, and the average price is 1.80 yuan / Jin last year.
Comparison
It slipped by 0.80 yuan / Jin, or 44%.
It is estimated that the price of cottonseed will drop by 0.10 yuan per catty under the price of lint cotton, and the price of seed cotton will be reduced by 0.06 yuan per catty, that is to say, the price of cotton seed will drop by 0.50 yuan / kg as compared with the previous year because of the decline in cottonseed prices.
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