Since the output of cotton reserves on May 3rd, the turnover rate has remained high. More than 95% of the turnover rate of local cotton and 100% of imported cotton were traded. It can be said that the focus of the entire cotton market is the output of cotton reserves. What are the situations of cotton growers, cotton enterprises and textile enterprises in the context of the output of cotton reserves?

Cotton prices: The price rises a little with no deals

An executive of a cotton enterprise in Shandong said that the prompt goods of ginned was believe not to rise. At present, he has more than 500 tons of cotton. Due to the cost factor, he makes the price of cotton increase by 100 yuan per ton, but there are no buyers in the market. At the same time, some cotton enterprises and cotton merchants in Hebei, Tianjin and soother places also raises the price slightly. On May 17, the price 3128 B local cotton is 12300-12500 yuan per ton and 3128B Xinjiang hand-picked cotton is 12700- 12,800 yuan per ton. But they all complaint that there is little quote so they are anxious that they would sustain losses in business.

Cotton farmers: Busy in sowing and facing up to the destiny

Since the last ten-day of April, cotton growers in Shandong, Hebei, Henan, Tianjin and other places has begun sowing. It is learned that the spring sowing of these cotton areas is divided into two stages. One is from mid-April to early May, when the price of Zhengmian rises rapidly, together with the price of prompt goods so that the market is hot and farmers speed up the spring sowing. Some farmers who were hesitant before also decide to sow cotton. A cotton grower of Xiajin Shandong grows 11 mu, a unit of area (=0.0667 hectares) of cotton, which is 4 mu mure than that of last year, showing that he has confidence in the next year's cotton prices.

Another stage is from May 3rd to now, the cotton reserves is outputted and rise in the price of prompt goods and Zhengmian abruptly stopped; the price of Zhengmian, in particular, fluctuated wildly so that people have no confidence in the market. At this point, it is the critical period of the spring sowing of cotton and many cotton growers began to hesitate. A farmer from Xingtai, Hebei, Lao Li said, although he planted 4 more mu of cotton this year, but he was afraid that the cotton price of the next year would not be high so he had to be at the mercy of nature.

Textile enterprises: they will give priority to cotton reserves which can save them

According to the China Cotton, most textile enterprises are now preparing for participating in the auction of cotton reserves. An official from a textile enterprise of Dezhou, Shandong said, in spite of the uneven quality of cotton reserves, they would choose the cotton reserves for the following two reasons. First, the overall quality of the new cotton in 2015 is poor, some of which is even poorer than cotton reserves. However, the cotton reserves are comprehensively checked by the China’s textile Bureau so all indicators of cotton reserves are good. Second, the cotton resources in the spot market are not much left and are distributed sporadically so it is difficult to from batches and to guarantee the quality. Some textile enterprises said that they will also choose cotton reserves according to the consistency.

Market participants expect the majority of textile enterprises keep low stocks raw material of, so the turnover rate will be high before the output of cotton reserves. Later with efficient replenishment of the stocks, the turnover rate of cotton reserves will decline, which will offer opportunities to the sales of high-quality ginned cotton.

（By China Textile News）