seed cotton procurement in some regions of Xinjiang

Machine-picked seed cotton in South Xinjiang started to arrive on the market during the National Day holiday (Oct 1-7), and prices have been constantly rising from end Sep to Oct 8. The mainstream prices of hand-picked seed cotton once reached to 11.4-11.6yuan/kg and that of machine-picked seed cotton approached 10.8-11.07yuan/kg. Zhengzhou cotton futures market hit new highs. Under such condition, the government released a series of policies to cool down the market, and relative institutions and departments in Xinjiang required some large state-owned enterprises to cut prices of seed cotton. Agricultural Development Bank of China and some local banks required to increase the margins on ginning factories. The seed cotton procurement progress slowed down somewhat, and some ginning factories stopped purchasing. Prices of seed cotton declined correspondingly. The prices of machine-picked seed cotton in South Xinjiang declined to 10-10.3yuan/kg. Nevertheless, the seed cotton prices are still in fierce competition currently. According to CCFGroup, the machine-picked seed cotton prices in North Xinjiang recovered to 10.5yuan/kg in recent two days, and harvest-rush appeared again. Recently, the prices of seed cotton in Xinjiang are volatile, luring much attention, and influencing the market sentiment. Therefore, we make a brief analysis on the seed cotton procurement in some regions of Xinjiang.