How do you convert Xinjiang seed cotton purchase prices into a lint cotton cost?
With Xinjiang machine-picked seed cotton quoted as high as 5.5 yuan/kg and cottonseed near 2.8 yuan/kg, the implied lint cost works out to about 9,867 yuan/tonne using a 40% gin turnout and a 1% loss allowance. That is an ideal-case figure. It excludes ginning labor, transport and other charges, which industry checks put between 500 and 1,000 yuan/tonne, lower for large-volume buyers and higher for small ones. Because ginners typically run a three-to-four-month processing window after the September-October harvest but may hold lint for much longer, the spread between seed cotton cost and lint futures is where margins are actually made or lost.
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