Hubei cotton warns that the acquisition of new cotton presents the phenomenon of “three highs”

On September 19, the cotton early warning system of Hubei Province investigated the acquisition of new cotton across the country. At present, the acquisition of new cotton presents “three highs”. First, the price is high, the second is high moisture, and the third is high risk.

In mid-August, there were sporadic cotton crops in Hubei Province. The opening price of 3.6-3.8 yuan/kg (more than 15% moisture) in Caidian area was surprising. However, in recent months, the purchase price has risen steadily and the prices at that time have looked back. Is already low, the highest price in the province has reached 4.65 yuan / kg.

It is understood that many companies have relaxed the moisture standards, within 15% of the cotton count as normal standards, and some as high as 20% or more, individual management of strict enterprises "follow the market" will be 10% of the standard adjusted to less than 13%.

Responsible people of cotton enterprises have expressed their worries about the market outlook, and believe that the outlook is uncertain, the price is rising, and business risks are increasing. Casting reserve prices and rising prices have supported and contributed to the increase in purchase prices. The current rallying price is the true performance of the supply and demand relationship, or the speculation of market speculation. It is worth thinking and exploring for cotton companies.