According to quotations from port traders such as Qingdao and Zhangjiagang, the net weight quotations of M 36 (1-1/8, strong 28GPT) and M 38 (strong 29GPT) on March 6 were 13,400-13,450 yuan/ton and 13,550-13,600 yuan/ton respectively. Yuan/ton (both basis quotations); while the net weight quotations of SM 1-1/8 West African cotton (mainly Benin, Burkina Faso, and Mali) in 2018/19 are concentrated at 13,500-13,550 yuan/ton; both In late February, the overall quotation fell by 100-150 yuan/ton; although the main contracts of ICE and Zheng cotton fluctuated widely, traders and export companies adjusted the basis difference, and the foreign cotton RMB quotation showed a “bottom at the bottom and a top at the top” State, market sentiment has not fluctuated violently with the global outbreak of the new crown epidemic, the collapse of the US stock market, and the slow progress of Chinese textile and apparel companies in resuming work and production.
Industry analysis shows that the reasons why foreign cotton spot prices are relatively resilient can be summarized as follows:
First, in January/February, port bonded and non-bonded cotton resources were imported from large international cotton merchants and Enterprises are concentrated (small traders and middlemen have withdrawn due to risks and financial pressure), and their ability to withstand the risk of price fluctuations has improved;
Second, traders have signed a large number of contracts to import US cotton from March to July. , the Fed’s interest rate cut and the global joint “anti-epidemic” are highly expected to be effective, and it is believed that after the epidemic, China, the global economy and cotton consumption will all enter the “fast lane”;
Third, the U.S. economy is expanding moderately And India’s MSP acquisition, the Chinese government’s strong purchase and storage of Xinjiang cotton and other positive factors have become important factors supporting traders. The United States released small non-agricultural data on Wednesday night: U.S. ADP employment increased by 183,000 in February (of which service industry employment increased by 172,000), which was better than the expected increase of 170,000, indicating that the U.S. job market is still strong and can withstand most factors. Risks arising from the COVID-19 epidemic.
According to feedback from several cotton traders, bonded warehouses, transit warehouses and other businesses have been greatly affected by the COVID-19 epidemic, such as loading and unloading, warehousing, logistics and transportation, etc., resulting in an increase in intermediate costs. ; In addition, in January and February, bonded + non-bonded foreign cotton “is more inbound and less outbound”, and the pressure on warehouses continues to rise. Therefore, storage fees are expected to be slightly increased. The bonded warehouse hopes that foreign cotton will speed up its outbound and circulation, and increase Utilization. </p
