Judging from the quotations of Indian cotton companies and international traders in late March, the fluctuation range of Indian cotton FOB, CNF and CIF quotations is relatively small, which is very different from the drastic adjustments in spot quotations of ICE cotton futures, Brazilian cotton and US cotton.
A cotton company in Qingdao said that after Zheng Cotton’s repeated downward breakthroughs, the transactions of Indian cotton at customs clearance points at the port were relatively active. Some small and medium-sized cotton spinning mills in Shandong, Henan, Hebei and other places , middlemen took the opportunity to purchase orders. Inquiries and transactions for bonded Indian cotton, Brazilian cotton, and U.S. cotton quoted in RMB are relatively slow. Due to the wide fluctuations of ICE and Zheng cotton, traders have very few supply sources at fixed prices, and basis quotations, pending orders, point prices, etc. dominate.
Why can Indian cotton spot and MCX futures move out of independent markets? Several cotton-related companies believe the following points:
First, the CCI benchmark sales price has only risen but not fallen, and the number of selling listings has continued to decrease, forming strong support for the current price of Indian cotton futures. ; The second is that domestic yarn mills in India have recently been ideal for inquiry and procurement of medium and high-quality Indian cotton, and European and American countries have continued to reduce tariffs on imported Indian goods; third, the growth momentum of the epidemic has been contained, global maritime transportation has gradually resumed, and order shipments and deliveries have Accelerating, the order situation of Indian textile and garment enterprises has further improved; fourth, Indian cotton yarn quotations have skyrocketed since December. Not only have the profits of yarn mills improved significantly, but large and medium-sized enterprises have arranged orders until May and June, and they have a relatively strong ability to withstand cotton prices. Indian exporters said that India’s 30-count combed yarn rose by 30-40% in February; fifth, due to the Federal Reserve maintaining low interest rates and the Biden administration’s “huge” fiscal stimulus, the Indian rupee faced very heavy depreciation pressure, which is good for India Export of cotton and cotton yarn.
According to statistics, on March 28-29, Qingdao Port’s bonded 2020/21 Indian cotton M 1-5/32 RMB quotation was about 14,000-14,300 yuan/ton; customs clearance 2019 /The quotation of M 1-5/32 Indian cotton in 2020 is 15,200-15,300 yuan/ton, which is lower than the quotation of “Double 28” Xinjiang cotton machine-picked cotton in Henan, Shandong and other inland warehouses, which is 200-300 yuan/ton (taking into account net weight and public settlement difference). </p
