Xinjiang Cotton Association holds 2021 Cotton Procurement, Processing and Market Analysis Symposium

Xinjiang Cotton Association held the 2021 Cotton Procurement, Processing and Market Analysis Symposium

On August 20, the Xinjiang Cotton Association held the “2021 Cotton Procurement, Processing and Market Analysis Symposium” in Urumqi. Some members of Xinjiang Cotton Association, including China Cotton Group Xinjiang Company, Lihua Group, Xinjiang Huafu Cotton Industry, Oriental Qianhai Cotton Company, etc. attended the meeting, Xinjiang CottonTarget Price Reform Leading Group The heads of relevant departments including the office, the Autonomous Region Development and Reform Commission, the Department of Agriculture and Rural Affairs, the Market Supervision Bureau, the Supply and Marketing Cooperatives, and the Agricultural Development Bank of China Xinjiang Branch were invited to attend the meeting. Comrade Wu Sheng, President of Xinjiang Cotton Association, presided over the symposium. 1.jpg

The meeting analyzed the purchase and sales situation of cotton and cotton textile industries in our region since 2020 and the impact of the recent climate on cotton growth, output, and Quality‘s influence is predicted by the new year’s cotton purchase price and market trends, as well as the role of the Agricultural Development Bank of China as the main channel for purchasing cotton credit funds, and the enhancement of corporate risk prevention and control awareness. Relevant departments notified the autonomous region of policies and measures to be taken in improving cotton quality, strengthening quality supervision in the procurement and processing links, and strengthening corporate integrity management and integrity system construction. Cotton enterprises are required to focus on improving quality in the new cotton year, clearly understand the development situation of the cotton industry, unify their ideological understanding, strengthen quality control, improve processing technology, promote enterprises to improve quality and efficiency, and promote the high-quality development of Xinjiang’s cotton industry.

The meeting believed that the cotton production situation this year is generally normal. The cotton planting area in the region is expected to be 35.12 million acres (including 22.62 million acres in local areas and 12.5 million acres in the Corps), a decrease of 2.4 million acres compared with the previous year. Cotton planting is further concentrated in areas suitable for cotton production, and the selection of excellent varieties has also received great attention. “One main and two auxiliary” cotton varieties have become the basic requirements for cotton production in various places. At present, cotton is growing normally. If there are no major natural disasters in the later period, the total cotton output is expected to be slightly reduced compared to the previous year. From the cotton marketsituation analysis, my country took the lead in stabilizing the situation during the severe epidemic, and its role as the “world’s factory” has become increasingly prominent. The large demand from the textile industry has directly driven cotton sales and cotton prices to gradually rise. By August, they had reached more than 18,000/ton, and both purchases and sales were booming. Cotton prices continue to rise, giving cotton producers higher expectations for the new year. The meeting held that it is difficult to predict the cotton business situation this year. From the analysis of the long-term market and the textile industry’s cost tolerance, the cotton market is difficult to maintain a long-term price increase trend. All companies should strengthen risk prevention and control and be cautious in purchasing. It is necessary to fully consider whether the profits of the textile industry can be maintained in the long term. Xinjiang’s cotton processing capacity still has a certain excess, the cotton sown area has been reduced due to water resources, etc., planting costs have increased, cotton farmers expect high prices, and the risks brought by the pressure of concentrated cotton listings . Enterprises should not rush to harvest, let alone harm farmers. They should focus on improving the quality of Xinjiang cotton, improve the quality of cotton procurement, control the quality of the processing process, pay close attention to downstream consumption, and make good use of the pace of international and domestic financial stimulus policies. We use futures and spot management methods to control risks, improve quality, and stabilize scale.