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How do you convert Xinjiang seed cotton purchase prices into a lint cotton cost?

Elena Vasquez
Published on 2026-08-21

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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  • James Morrison 2026-08-22 08:53
    The formula is only as good as its inputs. Cottonseed price is the swing variable, and it has been firm on strong oilseed values, which flatters the implied lint cost. If cottonseed cools, the same seed cotton quote translates into a higher lint breakeven, so re-run the math before locking forward sales.
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