Xinjiang cotton sales and production status and suggestions for mills to purchase cotton
——Wang ShengrongGeneral Manager Assistant, Xinjiang Lihua
2015-08-07 10:55:17

Firstly, Ms. Wang reviewed seed cotton purchasing and ginned cotton sales in 2014 season. It was hard time for ginners in Xinjiang that burdened high purchasing cost in Oct. Although sales were good before November, intensive arrival of upcountry cotton slowed down Xinjiang cotton sales. Besides, ginners needed to re-build up sales channel after 3-year reserve. The government auctioned reserved cotton at lower prices, which also stressed on ginners' sales.
In 2015, cotton planting area was estimated to decrease about 10%, though planting cost was marginally lower. With good weather, arrival may be advanced to early Sep. Growers were reluctant to sell seed cotton below cost, though they could revieve subsidy. Cotton production was estimated around 5.51 million tons, and ending stocks may decline slightly.
Ginners faces oversupply and auction of reserved cotton in 2015, but still have to purchase seed cotton. Thus ginners burden price risks and must transform management. For downstream mills, they should choose good suppliers and take part in ginning management.