It is learnt, most of ginners in Jiangsu Province have only a small volume of cotton left, and some ginners have sold out their cotton. This time is earlier from new cotton coming into the market, so most of ginneries are maintaining their machines for preparing the new cotton purchase.
In order to return loans, most of enterprises in Jiangsu considered the cotton market in 2006 rationally, the enterprises, which have cotton storage, have sold the goods actively. By far, the large ginneries in this area have almost had no cotton stored in their hands, and the small ginneries have still had small volume of cotton in hand. At present, the spot price of weak grade-2 local cotton is around 14,200-14,300 yuan/ton. Since sales is in time, though the cotton market is not in good situation this year, but most of ginneries are able to returned the loans back to the Agricultural Development Bank of China (ADBC), then the profit is not much, whereas the loss is quite small.
It is reported, in previous years, the new cotton began to come into the market at last ten days of September in Jiangsu Province, and large volume of cotton can be in the market at October and November. The ginners without cotton storage are maintaining their machines for preparing the new cotton purchase.
