According to feedback from cotton-related enterprises in Qingdao, Zhangjiagang, Guangzhou and other places, the number of foreign cotton arriving in Hong Kong and entering bonded warehouses has continued to increase since mid-March, mainly American cotton, Brazilian cotton, Indian cotton and West African cotton. With the decline of Zheng cotton futures, inquiries and transactions of customs-cleared cotton have improved, market sentiment has recovered, and the cotton import quota with a 1% tariff has been tightened. Therefore, the main ports have shown that “bonded cotton stocks have increased, and customs-cleared cotton stocks have remained flat or decreased. “The phenomenon.
A cotton company in Huangdao said that the quotations of West African cotton from Zimbabwe, Ivory Coast, Mali, Benin, Togo and other producing areas for the March-May 2020/21 shipping period have increased significantly. , among which the basis difference of SM 1-1/8 is concentrated at 6.5-7.25 cents/pound, and the basis difference of SM 1-5/32 is concentrated at 7.75-8.75 cents/pound (quoted ICE2105+basis), although it is lower than that of Brazil of the same grade The price of cotton is about 0.5-1.0 cents/pound, but it is 2-2.5 cents/pound higher than the quotation of Indian cotton in the same shipping period. Due to the high CNF and FOB quotations and the tightening of the 1% quota, West African cotton customs clearance and quotation resources are limited.
On March 22-23, the price of M 1-1/8 West African cotton (Mali cotton, Benin cotton, etc.) in China’s main port in 2019/20 was 15,950-16,050 yuan/ tons, while the quotation of M 1-1/8 in 2020/21 has reached 16,300-16,400 yuan/ton, which is almost the same as the quotation of Brazilian cotton with the same indicator.
From the survey, Qingdao Port currently clears Brazilian cotton M 1-1/8, US cotton M/E 41-3 36/37, and Indian cotton M 1-5/ 32 The quoted prices are 16,200-16,400 yuan/ton, 16,400-16,500 yuan/ton, and 15,800-16,000 yuan/ton. Recently, some foreign investors and cotton trading companies have lowered the basis difference between U.S. cotton and Brazilian cotton. The price difference between U.S. cotton, Brazilian cotton and Indian cotton has continued to narrow, and competitiveness has rebounded slightly.
Cotton-related enterprises in Shandong, Jiangsu and other places reported that not only the quantity of US cotton, Brazilian cotton and West African cotton arriving in Hong Kong and warehoused from February to March was relatively large, but also from April to May Foreign cotton resources are also very sufficient during the monthly shipping period. It is expected that the pressure on port storage capacity will be difficult to alleviate in the second and third quarters of 2020. Some large and medium-sized traders mostly book bonded warehouses with good locations and convenient access to goods 1-2 months in advance to avoid late payment fees, additional storage fees and insurance premiums due to inability to unload and store goods in time. </p
