How much is the market price of cotton per jin?

Cotton is one of the most important economic crops in China, which is widely cultivated all over the country, from the south to the west of Guangdong and Xinjiang, and has replaced tree cotton and grass cotton. In 2016, China's cotton sown area was 3433 thousand hectares, with a total output of 5.2 million tons, with a per hectare yield of 1514 kilograms, ranking first in the world in terms of cotton output. So how much is this so-called white gold crop per jin on the market? How is the supply and demand situation?

I. the market price of cotton

The price of cotton is mainly determined by its origin and quality, and cotton as a whole shows a downward trend this year. The average domestic lint price in August was 13492.55 yuan / ton, down 4.71% from the previous month and 16.70% from the same period last year. According to the current lint price, the price of hand-picked seed cotton is about 5.2-5.7 yuan / kg, and that of machine-picked seed cotton is about 4.5-4.8 yuan / kg. At this stage, the national cotton commercial inventory is at an all-time high, and a large number of cotton will be listed in some areas, and the supply of cotton in the market obviously exceeds the demand.

II. Supply and demand of cotton

Cotton is produced in 72 countries in the world, distributed in Asia, Africa, the United States, Europe and the oceans. China is the world's leading importer of cotton, and the United States is the third largest cotton producer and the largest cotton exporter in the world. In 2018, cotton production is estimated to be 4.05 million tons and exports are 3.27 million tons. Cotton exports account for about 36% of the world's total cotton exports.

In recent years, due to the depression of the domestic cotton spinning industry, the increasing planting costs of cotton farmers and the weak price of cotton, the cotton planting area in China has been shrinking. In 2019, China's total output is expected to be 6.042 million tons; consumption is expected to be 8.709 million tons, 109000 tons lower than the previous month; imports are expected to be 2.286 million tons, unadjusted; and the final inventory is 7.34 million tons, an increase of 156000 tons.

According to a survey conducted by the China Cotton Association, by the end of May, there were 750000 tons of cotton industrial stocks, 3.53 million tons of commercial stocks and 350000 tons of cotton reserves, which was generally at a comfortable level in supply. The prosperity of the textile industry has dropped to a relatively low level, and if there is a favorable trend in Sino-US economic and trade negotiations, cotton demand is expected to pick up. It is expected that domestic cotton prices will remain low in the short term.