Cotton Direct Subsidy Is Neutral To Cotton Price

Here in the world Clothing shoes and hats What the editor of www.chinanews.com introduces to you is CITIC Futures: cotton direct subsidy is more neutral than cotton price.

After the Xinjiang Uygur Autonomous Region People's Government's cotton target price reform pilot implementation plan was released yesterday, CITIC Futures released a report that believed that the direct subsidy policy would have a neutral and slightly more impact on future cotton prices.

According to the report of the semi annual report on agricultural products of the CITIC period, under the background of high and large national reserves, the characteristics of the domestic cotton market policy in the first half of 2014 are still the same, and the policy aspect has shifted from the dual track policy of collecting, selling and storing to the control period of dumping, storing and quota, and finally moved towards the implementation direction of the direct subsidy target policy, so as to achieve the ultimate goal of returning the domestic cotton market to market regulation in the second half of 2014, During the half year period, the future and current prices were completely derailed. The spot price was based on the national reserve price, while the futures price was constantly close to the foreign cotton price.

　　 "It is expected that the direct subsidy policy will have a slightly more neutral impact on the future cotton price. In addition, although the inventory of dumped cotton and stored cotton is still large, the reopening of dumped cotton and stored cotton may be postponed to the beginning of next year; on the supply side, the inventory of American cotton may be reduced and the supply of domestic cotton will decrease under the expectation of dumped cotton, stored cotton, imported cotton and new cotton production reduction; on the demand side, the demand for domestic cotton will increase due to the slow rise of downstream consumption and the decline in the substitution of competitive products. Therefore, under the combined effect of these three aspects, it is expected that the supply and demand of the domestic cotton market will be tightened as a whole in the second half of the year, while Zheng Mian will show a trend of "up - down - up" first, and its price bottom range is expected to be (13500-14500 yuan/ton), "said Chen Jing, an agricultural products analyst with CITIC Futures.

It is widely believed in the industry that the Xinjiang Uygur Autonomous Region People's Government has announced the pilot implementation plan of cotton target price reform, and 60% of the central subsidy fund will be subsidized according to the cotton planting area, and 40% according to the actual situation Sales volume Subsidy and cancel temporary collection and storage. This means that the cotton price in the new year is formed by the market supply and demand, which helps to stabilize the cotton price, straighten out the entire cotton textile industry chain, and lead the recovery of the cotton textile industry.

Multibit negotiable securities Analysts said that this time, the country canceled the temporary purchase and storage policy, let cotton return to the market price, and at the same time, gave cotton planting subsidies, taking into account the interests of farmers or enterprises, and is expected to reduce the cost of raw materials for textile enterprises, which is a major benefit to cotton textile enterprises. We can focus on relevant listed enterprises, such as Tianshan Textile, Zhonghe Shares, Demian Shares, Huafu Color Textile, Huafang Shares, etc.