Judging from the quotations of cotton traders in Zhangjiagang, Qingdao and other places, they are jointly supported by the ICE main contract opening at 77 cents/pound and the Zheng cotton CF2105 contract at 15,000 yuan/ton; coupled with the US donkey and elephant two The party reached an agreement on the US$900 billion COVID-19 relief bill, the CCI once again raised the cotton sales benchmark price on December 19 (a significant increase of 400 rupees/kandi from December 17), and the USDA monthly report, cotton export weekly report and other data are very impressive. Therefore, in the past week or so, whether the quotations of cargo, bonded cotton or customs-cleared cotton have continued to rebound, market sentiment has continued to pick up.
Textile companies in Shandong, Henan, Jiangsu and other places said that since mid-December, most foreign businessmen and importing companies have not adjusted the basis of US cotton, Brazilian cotton, Indian cotton, etc., and the quotations have increased with the rise of ICE and Zheng cotton. “A rising tide lifts all boats.” On December 20-21, Qingdao Port M 1-1/8 Brazilian cotton (strong 28/29GPT) and US cotton 31-3 36 (strong 28GPT) were quoted at 15,700-15,900 yuan/ton and 15,700-15,850 yuan respectively. / ton, the price of Brazilian cotton is the same as that of US cotton, or even slightly “overtaking” it, both rising by 300-400 yuan / ton compared with early December.
Industry analysis shows that in addition to the rise in domestic and foreign futures prices, the scarcity of cotton import quotas within the 1% tariff is also an important factor. Judging from the survey, the current December shipping schedule and bonded cotton spot RMB quotations have increased significantly compared with November. Purchasers are required to bring their own 1% quota for customs clearance, especially Indian cotton.
On December 20-21, the quotations of Indian M 1-5/32 bonded cotton and M 1-5/32 customs cleared cotton at Qingdao Port were 13150-13200 yuan/ton and 14550-14700 yuan/ton respectively (quotations from individual cotton companies On the high side, basically impossible to transact), both are lower than M 1-5/32 Brazilian cotton, 31-3 36 US cotton spot quotations are more than 1,000 yuan/ton, but Indian cotton inquiries and shipments in 2019/20 and 2020/21 But there has been little improvement. On the one hand, the Indian cotton commodity inspection results are not completely consistent with the “bulk goods”, and the quality of lint cotton varies greatly between different manufacturers and different processing periods; in addition, the weight loss problem is heavier than that of American cotton and Brazilian cotton; on the other hand, On the other hand, textile companies have recently received orders for 40-60S medium and high-count yarns, and the production and sales situation is not satisfactory; while cotton yarns with counts of 32S and below have continued the “warm boiling water” market, and spinners are not very “cold” about low- to medium-quality and high-grade Indian cotton. . </p
