After the Spring Festival, ICE cotton futures continued to rise, fueled by the weakening of the U.S. dollar, the overall bullishness of commodities and the USDA report, with the main contracts breaking through 90 cents/lb and 92 cents/lb in a row (February 22 The intraday high was 92.55 cents/pound), and the resistance level of 95 cents/pound is just around the corner. At the same time, Zheng cotton futures also surged after the holiday. On the 22nd, the CF2105 contract once touched 16,500 yuan/ton. The internal and external markets echoed each other and rose hand in hand. As a result, the spot quotations for cargo, bonded cotton and customs-cleared foreign cotton have been rising recently. In response to the rapid increase, the entire cotton market has a strong bullish and chasing atmosphere.
A large cotton import company in Huangdao said that in the past week, the quotations of foreign cotton in US dollars and RMB have been passively and continuously rising, resulting in a decline in the cost performance of foreign cotton. In addition, most domestic textile companies have made slightly greater efforts to restock foreign cotton before the Spring Festival. Therefore, At present, both the signing and shipment of cargo from March to May or spot goods at the port (bonded + customs clearance cotton) are relatively slow (only a small number of pending orders and fixed-price foreign cotton transactions).
Several international cotton merchants and large trading companies said that due to the sharp rise in ICE and Zheng cotton after the holiday, it has become more difficult to quote cotton to the outside world. The phenomenon of “one price a day, even two prices a day, or three prices a day” not only makes downstream Buyers such as cotton textile mills and middlemen feel at a loss and find it difficult to place actual orders. Cotton sellers are also struggling to adjust their quotations and repeatedly communicate and negotiate with customers.
Because the main ICE contract rose by 193 points on February 22, the atmosphere of speculation continued to escalate, and Zheng cotton was about to reach 16,500 yuan/ton. Therefore, on the morning of the 23rd, cotton merchants had a strong wait-and-see mood in their quotations, and were reluctant to sell and pursue higher prices. The phenomenon is relatively common, especially the quotations of U.S. cotton in U.S. dollars and RMB are too high.
On the 23rd, Qingdao Port’s bonded M 1-1/8 Brazilian cotton quotation was 98.80-99.50 cents/pound (basis 6-6.5 cents/pound, ICE2105+basis); US cotton shipping schedule ME in March/April The quotation of 31-3 36/37 reaches 100-101 cents/pound; the quotation of US cotton EMOT 1-1/8 for April/July shipping period is 101-101.5 cents/pound. A cotton enterprise in Zhangjiagang reported that due to the continuous sharp increase of ICE and Zheng cotton, the current quotations of bonded and customs-cleared foreign cotton at the port are relatively confusing. The price difference of foreign cotton of the same grade and quality has been significantly expanded compared with before the Spring Festival, and the judgments and operations of sellers are also more divergent. big. </p
