Industrial Cluster: The Purchase Price Of Seed Cotton In Cotton Area Dropped Slightly

According to the feedback of some ginning plants and cotton farmers in Changji, Shihezi, Tacheng, Kuitun and other places, as the main CF2501 contract of Zheng Mian fell below the 14000 yuan/ton threshold again this week, the recent cooling and precipitation led to the increase of seed cotton moisture. In addition, seed cotton harvesting in several major cotton regions in northern Xinjiang has basically ended, and the number of secondary harvested seed cotton has increased, so the purchasing sentiment of some ginning plants has gradually cooled. Although the purchase price of "egg roll cotton" with 40% lint percentage and moisture content less than 12% is still 6.20-6.30 yuan/kg (the purchase price of cotton enterprises in Bingtuan is generally 0.02-0.05 yuan/kg lower than that of local enterprises), the actual purchase price of machine picked seed cotton has dropped slightly compared with last week due to the increasingly strict inspection of ginning plants, and the maximum purchase price of seed cotton with 42% lint percentage and above has been lowered from 6.50 yuan/kg to 6.45 yuan/kg, The range is mostly 0.02-0.03 yuan/kg.

A cotton enterprise in Changji said that by the end of October, the progress of seed cotton harvesting in Changji and Shihezi had exceeded 90%. Since there was almost no reluctance to sell and hoard seed cotton in individual agriculture, cotton growers and cooperatives, the progress of seed cotton sales was also significantly ahead of the previous two years on a year-on-year basis, which is expected to reach 80-85%. Ginning plants are mostly in the state of "fast acquisition, fast processing and fast sales". On the one hand, some ginning plants have achieved their business objectives in 2024/25 ahead of schedule, and have begun to actively slow down their acquisition progress and become more wait-and-see; On the other hand, based on the recent purchase price of seed cotton and the sales price of seed cotton, when the main contract of Zheng Mian fell to around 14000 yuan/ton, the ginning plant had no profits or even lost a little (the basis difference of lint cotton in 2024/25 was generally reduced, and some traders and futures companies purchased the "Double 29" basis of 650 yuan/ton and the "Single 29" basis of 550 yuan/ton), so the ginning plant acquisition tended to be cautious.

According to the statistics of relevant departments, by the end of October 2024, the cumulative processing of lint cotton in Xinjiang in 2024/25 will exceed 1.87 million tons (accounting for more than 30% of the total cotton output forecast in Xinjiang this year), with a year-on-year growth rate of more than 45%. According to the progress of seed cotton collection and sale in northern and southern Xinjiang in this year, the cumulative purchase volume of seed cotton by ginning plants in Xinjiang may not be less than 4.5 million tons of lint cotton. However, up to now, 921 ginning plants in Xinjiang have participated in the notarial inspection of new system ginning plants in 2024, which is significantly lower than the same period in 2023/24 (1018 ginning plants participated in the public inspection in 2023/24).