Judging from the quotations of various cotton merchants, the quotation basis of various cotton varieties has weakened in the past week, especially Australian cotton. The basis of SM 1-5/32 grade cotton in various import markets is 1300 points or the following. Judging from the actual transactions, there is some transaction of Australian cotton and it is shipped to Chinese ports, but it is not clear whether it is sold to cotton merchants, state-owned enterprises or consumers.
One of the problems that cotton merchants have been reporting in recent weeks is that although the sales of Australian cotton’s new flowers in 2021 have indeed shown some positive signs in various places, the real transactions are actually small orders and ready-to-use. Buy as you go, not the big orders like in the past. Overall, international spot transactions last week were still dominated by U.S. cotton and Brazilian cotton. There is news that China’s demand for U.S. cotton has increased, including bonded cotton at ports, but most areas outside China hope to be close to U.S. cotton. Cotton prices to purchase Australian cotton.
Last week, the yarn market continued to strengthen, especially in India and Bangladesh, mainly due to rising downstream demand for textiles. At this time, inventories were stretched and production growth was limited. Demand can and does amplify this effect during periods of inventory rebuilding. </p
