According to feedback from cotton traders in Qingdao, Zhangjiagang, Guangzhou and other places, although the Zheng cotton CF2105 contract has formed a de facto “internal and external resonance and mutual support” after the sharp rise, the intensity and amplitude of the increase are obviously weaker than that of ICE. The cotton price difference narrowed to about 1,100 yuan/ton, gradually approaching the rigid conditions for the start of Xinjiang cotton rotation in 2020/21.
Due to the simultaneous rise in domestic and foreign cotton prices, coupled with the fact that most domestic cotton textile mills and cotton traders are currently on holiday or about to have a holiday, the procurement of cotton and other raw materials has basically stagnated, and the incoming and outgoing goods in some bonded areas and transit warehouses at the port have also increased sharply. Slowing down, therefore, the short-term rise in foreign cotton US dollars, RMB bonded and customs clearance cotton lacks strong support from inquiry and trading volume, and is in a state of “half-empty rise with little market value”.
An import company in Huangdao said that since the beginning of February, the number of customers making inquiries, viewing goods, and picking up goods has continued to decrease. Staff in foreign offices, trading companies, etc. have taken vacations and evacuated. Some warehouses have also posted orders. An announcement was made to suspend the import and export of goods from February 10 to February 16. Therefore, the quotations and transactions of US cotton, Brazilian cotton, Indian cotton, West African cotton, etc. have dropped significantly at the port and have even fallen into a deserted state. The entire bonded cotton and customs clearance cotton business has entered “Semi-sleep” state.
On February 7-8, Qingdao Port customs clearance US cotton 31-3 36 (strong 28/29GPT) net weight quotation is 16550-16700 yuan/ton; US cotton 31-3 37 (strong 28/29GPT) The net weight quotation is 16,750-16,900 yuan/ton; while the net weight quotation of Brazilian cotton M 1-1/8 is concentrated at 16,200-16,300 yuan/ton (including fixed price and basis quotation). Brazilian cotton and American cotton of the same grade and quality index are concentrated in 16,200-16,300 yuan/ton. The price difference has narrowed to 50-150 yuan/ton; while the quoted weight of “Double 28” Xinjiang machine-picked cotton in Henan, Jiangsu and other mainland warehouses is about 15,850-16,000 yuan/ton, which is also the same as the price of customs-cleared Brazilian cotton M 1-1/8 Basically “in line”, so the competitiveness of cargo, bonded and customs clearance foreign cotton has continued to decline in the past week or so. </p
