Since the second half of 2010, cotton has undergone two up two down market, the global cotton
production is now sufficient, it has been difficult to improve the situation of supply exceeding
demand, therefore prices low levels.
Trend analysis of market outlook, I believe that, although not a time to improve the situation
of supply exceeding demand, but due to the cost of support, cotton has no space to continue
downward, after the completion of repeated bottoms, will usher in the warmer rising market.
After experiencing the ups and downs cotton prices, now hovering at near cost of production,
some farmers sold seed from last year's 7 yuan / kg fell $ 4 today / kg, pesticides and
fertilizer prices coupled with higher prices, now about sacrificing the sale of seed cotton 0.4
yuan / kg,
China
Pet Non-woven Bag, while the cultivation of cotton and grow food with different losses
without any subsidy, so that cotton farmers miserable fall.
Textile enterprises are also facing sluggish sales, business inventories increase profits and
reduce the operating rate of decline of difficulties.
In addition, part of the acquisition cost of higher cotton prices, cotton is not sold out,
enterprises are facing repayment pressures, management difficult. Adequate supply of cotton,
Recycled bag, so cotton is hard to bear the
status of pressure, but the cultivation and processing costs, the cotton price has fallen to the
bottom.
At the present price level, to yield 400 pounds of cotton / acre calculation, plus fertilizer,
plowing, seeds, sowing, plastic film, pesticides, fertilizer, irrigation, and rent and a variety
of manpower costs, the cost of seed cotton price of about 4.2 yuan / kg , while the current
market cost of planting seed cotton purchase price is near.
In addition, seed cotton requires a series of machining processes,
PET non woven bag,
and ultimately made of lint. Converted into the calculation of seed cotton lint involved in
several data indicators: lint percentage rate of 38%, 1% loss rate, loss rate of 1% of the
clothing. Source: www.cnmhc.com
