Jiangsu cotton prices show a decline

Recently it was the pick-and-sell period for cotton picking in the Huang-Huai-Hai area. It was learned that, in some cotton-producing areas in northern Jiangsu, the 200-type cotton company had acquired the third-class cotton from a small premium price earlier and now only received cotton below the fourth-grade. Asked the reason, most companies answered that in 2011 cotton resources were scarce, and they were listed late. The ratio of hard grades to grade 3 or lower was relatively low. In recent days, the cotton price was unstable, and the spot price fell. For the purchase of low-grade cotton, farmers value the price without high-grade cotton. The actual operation is below 3.80 yuan. A few of these cottons can be manually analyzed and upgraded by machinery. The remaining low-level lint cotton is also purchased by many air-spinning companies. Textile raw materials, sales are close to the market, there are few risks, and profits are not lost.

In 2011, the proportion of cotton below grade 4 in northern Jiangsu is relatively high. It will be listed from late November to the end of the year. Therefore, small and medium-sized cotton enterprises avoid the high risk of purchasing high-grade cotton, and are willing to purchase processing and sales of grade 5-6 cotton. The market consists of constituents and each complements each other.