Worried About Insufficient Consumption, Cotton Enterprises Lack Confidence In Expectations

In the near future, most areas in Xinjiang are dominated by sunny weather, with the temperature of about 19-36 ℃, and the temperature difference between day and night is obvious. Up to now, the boll setting of most cotton fields has been basically finalized, and the impact of weather factors on cotton growth has been relatively reduced. Although there are some small areas of dry land in some areas with boll dropping or red spider and other diseases, it does not pose a threat to the overall harvest prospects. At present, cotton field management has entered the late stage, and water and fertilizer are gradually reduced or stopped.

According to the survey, most small and medium-sized cotton enterprises in Xinjiang have emptied their surplus resources and are now making preparations for the new year's purchase. Although some cotton enterprises predict that the purchase price of seed cotton may be low this year, they still have a little lack of confidence in seizing the harvest. The main reason is that many cotton enterprises have not yet fully recovered after experiencing heavy losses in 2021, Due to the limitation of financial strength, the acquisition of new cotton can only choose to be careful in combination with the downstream market and the futures market price, and keep a rational expectation of the profit rate; Secondly, the enthusiasm of powerful large enterprises to participate in the purchase and processing of Xinjiang bale factory has also dropped significantly, which is bound to make the competition in the seed cotton purchase market not too fierce.

In addition, although the start-up of local textile enterprises in Xinjiang has remained at a normal level, they have no plans to purchase a large amount of raw materials when the orders in the downstream market have not improved significantly. Recently, the domestic commodity index has continued to decline, and cotton futures and spot prices have not been spared. People in the industry are still worried about the possible economic recession causing insufficient consumption.