According to the survey, affected by the continuous plunge of ICE futures in recent days, the shipping schedules of some international cotton merchants and import companies, and the further weakening of bonded cotton basis, the overall foreign cotton futures transaction has bottomed out, and some products with high cost performance have rebounded. Inquiries and shipments of Brazilian cotton, US cotton, and West African cotton in 2019/20 have picked up compared with previous weeks.
A trading company in Zhangjiagang said that not only a certain amount of ON-CALL point price contracts were passively traded, but also the Zheng cotton CF2009 contract opened at 12,000 yuan/ton, and the base price quoted for customs clearance of US cotton, Brazilian cotton, and Indian cotton The attractiveness of cotton to domestic cotton textile enterprises and middlemen has also rebounded. In addition, ICE’s main force fell to 61 cents/pound, causing foreign cotton futures FOB, CNF and bonded quotations to decline. The price difference between domestic and foreign cotton continued to expand, and the competitiveness of foreign cotton showed a phased recovery.
On July 27-28, the quotations of M 1-1/8 and M 36 Brazilian customs clearance cotton in Zhangjiagang, Qingdao and other places were 12550-12650 yuan/ton and 12700-12800 yuan/ton respectively, which was only higher than the previous price. The weekly correction is 50-100 yuan/ton (obviously out of sync with the 3-4 cents/pound decline in ICE’s main contract); while the 2019/20 US cotton 31-3-36 (strong 28GPT) quotation is 13050-13100 yuan/ton, It has been adjusted downward by 100-150 yuan/ton compared with last week. Traders are reluctant to sell and their sentiment of price support has not weakened. On the one hand, there is less and less hope of sliding the quasi-tax quota; on the other hand, the sudden outbreak of the new crown epidemic in Xinjiang and its continued growth have caused Xinjiang’s road and railway shipments to be greatly affected. The supply of high-grade and high-quality cotton from the mainland in August/September/October may be On the tight side.
In addition, some cotton traders have judged that the imported epidemic is more likely to worsen in autumn and winter this year. Therefore, in the second half of 2020, they will not only become more cautious about cotton from areas where the new crown epidemic is raging, such as the United States, Brazil, and Central Asia, etc. , and will intensify inspection and quarantine efforts to cut off the import of viruses from abroad. Therefore, foreign cotton cleared by customs is not eager to sell at a reduced price, and the mentality of holding the goods and waiting to sell prevails.
Judging from the quotations of several international cotton merchants and US export companies, the shipping schedule resource indicators in January/March are mostly medium to low lengths of 1 1/16-1 1/8, strong 26-28GPT, etc. Quality, compared with 2020/21 Brazilian cotton and West African cotton, the price/performance ratio is lower. </p
