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New cotton linter to arrive soon

Views: 0     Author: Site Editor     Publish Time: 2021-09-17      Origin: Site

Seed cotton has been picked and gradually arrived at the market with bolls opening of cotton since late Aug, so new cottonseed and cotton linter will arrive soon. The procurement price of new seed cotton is expected to be high and there are huge divergences among offers of new cottonseed now, so the trend of new cotton linter is much divided.

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Seed cotton has been picked on small quantity with faster bolls opening

New seed cotton has been picked on small quantity in Anhui, Hebei and Shandong since late Aug and some has been traded on the market. Hand-picked cotton in Xinjiang will be picked around early-to-mid Sep and machine-picked cotton will be picked during late Sep-early Oct. The arrival of cotton in Tangshan of Hebei is later than that of last year affected by the weather.

The competition for seed cotton procurement is expected to be strong this year amid Chinese cotton production cut and dismatch of ginning capacity and seed cotton resources, so the procurement price of seed cotton is predicted to be high and going up, which may be between 8-9yuan/kg and the peak may exceed 9yuan/kg. Cottonseed in Xinjiang was around 3-3.5yuan/kg and the cost of cotton is calculated around 18,000-19,000yuan/mt.

New cottonseed will be arriving faster around mid-Sep and new cotton linter will gradually arrive at the market at the end of Sep. The arrival is likely to speed up around the National Day holiday.

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In conclusion, the time of cotton picking is similar with that of last year, which may be 3-5 days delayed in some areas due to bad weather. Cotton production in 2021/22 crop year is expected to decrease by more than 7% to 5.75 million tons and seed cotton procurement price is likely to increase from high level. New cottonseed and cotton linter will gradually arrive at the market in mid-to-late Sep and cotton linter prices will hold steady during the transition period.

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