Cotton Led The Collective Price Dive Of 20% Agricultural Products Prices

Since November, the government has been throwing away reserves, and the series of price stabilization measures have been introduced quickly, and the price of agricultural products has finally dropped sharply under the strong regulation.

Since November 10th, the price of cotton sugar, which was previously eyed by idle capital, has plunged sharply.

As of yesterday, the bulk futures prices of sugar and cotton fell by more than 10%, of which cotton prices were the largest, falling by 20%.

Prices plunge, agricultural products fall alternately

Cotton prices, which have been soaring since mid September, suddenly changed in mid November, turning to a straight line.

In November 26th, China's cotton price index (grade 328 cotton) was 26681 yuan / ton, compared with the historical high level of 31302 yuan / ton in November 11th, it has dropped 4621 yuan / ton, or 14.76%.

On November 11th and 12, cotton futures prices continued to fall for two consecutive days, and cotton futures prices continued to fall.

Yesterday, the Zhengzhou Mercantile Exchange Cotton Futures (1109 main contract) closed at a price of 26365 yuan, compared with the highest price of 33500 yuan in November 10th, has dropped 20%.

According to the national development and Reform Commission's monitoring of domestic commodity futures trading prices, domestic commodity prices have dropped sharply since November 12th.

Cotton declined the most.

At the same time, sugar prices also plunged rapidly, within a mere two weeks, the price of each ton fell by nearly 1000 yuan.

Yesterday, the Zhengzhou commodity exchange sugar futures main contract SR1109 closing price of 6535 yuan, relative to the high in November 10th has dropped 11.52%.

Local vegetable prices lower

In Chengdu Tianya Shi Cai market, vegetable prices have dropped considerably compared with before. For example, spinach dropped from about 4 yuan / jin to 1.5 yuan / Jin.

A vegetable dealer told reporters that the price of vegetables had risen earlier because the local dishes were not listed, and the dishes in the market were all out of town.

Today, local dishes are listed and prices are naturally reduced.

Before that, the price of "garlic you ruthless" and "Ginger your army" were all down.

A boss of a dry shop said, "the price of garlic is going up and down this year, that is, a few cents to one yuan.

In the first half of this year, the drought was dry, and the second half of the year was also flooded, and the output was low.

There are also owners who have hoarding goods, but not much, and a month has come down.

The owner of another dry shop told reporters that when ginger was the most expensive, they did not buy it because they were afraid they could not sell it.

Yang Shuqiong, Secretary General of Sichuan garment industry association, told the Huaxi Metropolis Daily that the soaring cotton prices since mid September have made many garment manufacturers in Sichuan feel pressure and even dare not take orders.

The association has more than 400 member enterprises, and nearly 7 or so of the member enterprises are greatly affected by the rise in cotton prices.

"If clothing companies play brands, the profit margins will be large, and the impact will be relatively small.

However, many clothing enterprises in Sichuan often make processing and group buying. The price of raw materials has led to an increase of 3 to 4 percent of factory garment prices. However, in order to stabilize customers, many enterprises have raised their factory price by only about 10%-15%.

The more you do it, the more you will lose.

Yang Shuqiong believes that the return of cotton prices is good news for clothing companies.

Li Panfeng, director of research and development of Peter futures, said that the price reduction of agricultural products is an important factor in the gradual inhibition of the national macro regulation and the irrational components of the upstream upstream market.

In November, the central bank raised the deposit reserve rate for the two time, indicating that the central bank tightened inflation expectations by controlling the size of credit.

In addition, the government adopted a series of measures to stabilize prices, which affected the irrational atmosphere of commodity futures and spot markets.

However, it should be noted that irrational elements do not necessarily refer to the speculation of hot money.

Li Panfeng also pointed out that although regulation is effective at once, the contradiction between supply and demand can not be fundamentally solved in the short term, and it is more of a shift in demand.

Judging from the market outlook, the current cotton supply and demand sides to achieve a balance of power, before the price is difficult to be surpassed again.