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Cotton Prices Rose By &Nbsp; Wenzhou Customers Flocked To Xinjiang Cotton City.

2010/10/18 14:08:00 74

Although we can not judge the involvement of hot money.

Fried cotton

However, the speculators who lick blood at the edge of the knife bite the Xinjiang cotton city.

As early as the beginning of this year, some people and experts have asserted that Xinjiang cotton, known as platinum, will become the next target of speculation.

With the advent of new cotton, the size of Cotton Traders gathered in Xinjiang increased significantly compared with previous years. They ordered cotton fields locally, leasing production lines, and began large-scale intervention in cotton purchase.

After entering September, the local cotton traders, called local self-employed, have been gathering in Akesu and surrounding cotton areas for acquisitions.

New cotton

There are many people living in Wenzhou.

According to the local main cotton enterprises to this reporter, this year only to Akesu to find opportunities for self-employed more than 200 people, far more than in previous years, and to the surrounding cotton producing counties and cities may be more self-employed.

Tianshan cotton industry is one of the largest cotton processing enterprises in Akesu.

At present, the company's 3 production lines, in addition to one for their own use, the remaining two for a textile enterprise in Dezhou, Shandong and more than 20 from the Wenzhou self-employed generation processing.

There are quite a few people in Wenzhou like other cotton ginning companies who have leased the production line.

According to Fang Hongyan, general manager of the Tianshan cotton industry in Akesu, as early as June this year, most of the Wenzhou bosses had ordered cotton to the local cotton fields, and promised cotton growers that they would buy cotton at a higher price than the market price, and at the same time leased the production line to local cotton processing enterprises ahead of schedule to prepare for the autumn acquisition and processing of cotton.

There are nearly 50 cotton processing enterprises in Akesu, most of which were built by businessmen from Wenzhou in Xinjiang around 2003.

Chen Shiwen, executive vice president of the Wenzhou chamber of Commerce in Akesu, told correspondents that when the cotton prices began to rise in February this year, the self-employed people came to Akesu to buy cotton and were ready to hoard, but at that time cotton was basically sold out, and most of the Wenzhou villagers returned empty handed.

Chen Shiwen said that because of this trend, rumors of Xinjiang's scrambled cotton at the beginning of the year had been noisy for a while.

According to some cotton merchants in Wenzhou, although the Wenzhou people who are preparing for the cotton business do not have much money in their hands, they are only 23 million yuan per person. But when they combine themselves, they can quickly gather tens of millions of yuan or even hundreds of millions of yuan in purchasing funds.

Some cotton enterprises reflect that Kashi and other southern Xinjiang cotton areas have also seen many self-employed individuals waiting for the purchase of cotton.

Many foreign households to join the acquisition of cotton, not only exacerbated this year's battle for cotton resources, but also further raised the already high frightening cotton prices.

This is likely to happen 6 years ago.

In the fall of 2003, Chen Shiwen said, in order to snatch resources,

Xinjiang

Foreign takeovers and Cotton Traders scrambled to raise prices to compete for relatively limited cotton resources. When the purchase price of cotton was the highest, they were once fired to 10 yuan per kilogram.

Worried about the lack of cotton in the future, local businesses had to bite their teeth and play cards.

However, only 3 months later, domestic cotton prices plummeted, so the main cotton enterprises were generally losing money. Many cotton merchants in Xinjiang invested and built factories were also unable to escape. Most of the funds were trapped. Many people still haven't recovered all their investment so far, so they have to continue to pay for cotton.

Chen Shiwen said that he intended to make a profit, but eventually he became a business.

Over the next 3 years, the cotton industry in Xinjiang and even the rest of the country was hard to find and the entire industry suffered heavy losses.

The fact seems to confirm some of the concerns of Xinjiang's cotton business.

After September 20th this year, in the southern part of Xinjiang, where cotton was opened earlier, the scale of cotton reached 11 yuan per kilogram, exceeding the highest price in history.

Correspondents contacted by some cotton enterprises in Xinjiang said that although cotton prices had scared them, if everyone was fighting for resources, they would have to follow up their efforts. Otherwise, factories, equipment and personnel would lose money equally.

Whether there will be any hot money in the cotton market this year, Du Min, a researcher at the Ministry of agriculture's Rural Economic Research Center, thinks that the main reason for the sharp rise in cotton prices this year is due to the imbalance between supply and demand. The factors of speculation are not big. Even if the cotton price is high, if the domestic textile enterprises can not accept it, they will not be able to take the last stick of the drum to spread flowers. Finally, the bad luck is the author himself.

Therefore, as long as the State takes measures to control the price of domestic cotton futures, it is hard to raise big waves in the spot market.

In contrast with Du min's views, some people in the industry believe that the growing gap in China's cotton industry has provided favorable conditions for the speculation of cotton prices.

After experiencing the storm of stir fried garlic, Xu Xiangyang, director of the economic crops Station of Heze Agricultural Bureau of Shandong, said that the shortage of supply and demand and the rising price were the most basic conditions for agricultural products to be hyped in recent years. Now cotton is also available.

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Some cotton traders in Wenzhou are quite dissatisfied with their image as a speculators.

Chen Shiwen said that private capital intervention in the field of cotton purchase is neither illegal nor hoarding. Therefore, it is unfair to interpret Wen's investment behavior by frying.

Whether the hot money is really involved in cotton speculation remains to be seen, but only such rumors will cause market volatility and push up cotton prices.

For example, after the Spring Festival this year, there was a rumor that 10 billion yuan of Zhejiang private capital was evacuated from Shanxi coal mine and domestic real estate market to Xinjiang cotton market. Although this is not consistent with the facts, the domestic cotton price has risen.

Since entering September this year, domestic cotton futures prices have surged by more than 6000 yuan in a short span of 40 days.

Some people in the industry say that there is no hype about hot money. It is hard to see such a situation.

Ma Wenfeng, an analyst with Beijing orient Agricultural Consulting Co. Ltd., thinks that money is profitable and it is hard to put an end to its hype about the potential market of cotton.

The way to cut off its hype is to strengthen the supply of cotton and other related products and reduce the opportunity for capital speculation.

At the same time, it is necessary to make the amount of money supply to meet economic growth, avoid excessive currency nowhere investment, and seek opportunities everywhere.