2016 Domestic Cotton Prices Will Appear "Ice And Fire Two Days" Situation.

Entering the May, the national cotton planting has ended.

I came to my major cotton producing province.

It has been learned that this year, there are cotton growers in every producing area in Hebei. It is predicted that the planting area of cotton this year or the lowest level in recent years.

Hebei is one of the major cotton producing provinces in China, and its annual planting area is close to 6 million mu.

According to the situation of planting all over this year, the sowing area of the whole province is very hard to reach 4 million mu.

Sun Liwu, analyst of Zhuo Chuang information market,

Continuous downturn and limited market demand are the main causes of large area abandonment.

It is understood that in 2014, the state began to cancel the purchase and storage of cotton, instead of subsidized cotton prices in Xinjiang, and the policy of subsidized cotton in the mainland made the cotton prices fall sharply, affecting the interests of cotton farmers.

From the perspective of industrial chain, for textile enterprises, there are high domestic cotton prices, high and low cotton price differences, and international competition intensifies, especially in Southeast Asia.

Operation is difficult, directly to the upstream, causing the domestic cotton industry downturn.

By the end of April this year, the national average price of cotton was 12235 yuan per ton, down 7.7% from the same period in 2015, which has reached 60.8% compared with the 2011 peak.

Analysis of the industry, price fall is a rational behavior of the market, but the price has skyrocketed to a straight line, bringing cotton growers more and more unwilling to grow cotton.

Jia Decai, director of Agricultural Technology Extension Station in Nangong, Hebei, who has been engaged in Cotton Research for more than 30 years, believes that the traditional cotton planting mode must be adjusted. Intensive and large-scale development is the direction of cotton planting in the future.

Jia Decai suggested that it is an effective way to popularize cotton interplanting in a large area.

Jia Decai said, interplanting, raising the cotton field benefits, cotton, watermelon intercropping, mung bean intercropping, Potato Intercropping and so on, planted a small green beans, earn at least 500-600 yuan a year.

Besides,

It is also generally concerned about the future of cotton prices in the market this year. Sun Liwu believes that the domestic cotton end inventory in 2015 is as high as 13 million 50 thousand tons, and the supply and demand is seriously unbalanced.

When the national cotton store will come out, it will directly affect the price of staple cotton in the market.

Although the overall supply of cotton market is oversupply, but Sun Liwu analysis, in 2016, China's high quality cotton is still in a tight state of supply.

From this point of view, in 2016, domestic cotton prices will appear "ice and fire two days" situation, high and low quality cotton price difference may continue to widen.