According to feedback from several international cotton merchants and domestic cotton traders, the basis spreads of Brazilian cotton, US cotton, West African cotton, Uzbek cotton, and Indian cotton have continued to increase since late October (especially the 11/12 shipping date and the bonded 2019 , the basis difference of Brazilian cotton in 2020 can be said to skyrocket, and the scenery is unlimited); combined with the RMB exchange rate against the US dollar changing from appreciation to depreciation and Zheng cotton falling below 14,500 yuan/ton, the 2019/20 Zheng cotton warehouse receipts, reserve commodity cotton sales accelerated and other factors In the past week or so, inquiries and transactions for cargo, bonded and customs-cleared foreign cotton have weakened significantly compared with October, and textile companies have returned to a state of purchasing on demand, waiting more and less to place orders.
A cotton merchant in Qingdao said that since late October, foreign cotton shipments from the port have been cooling down, and traders have failed to raise prices for medium and high-quality Australian cotton, American cotton, and Brazilian cotton; however, some cotton companies have used ICE as their main force The timing of the contract correction to 68-69 cents/pound bucked the trend and raised the US cotton basis for 2019/20. It was boycotted by domestic cotton textile companies and middlemen. US cotton 31-336 (M 1-5/32) and above were high. The “fever reduction” of high-quality US cotton shipments is obvious. Judging from the survey, cotton trading companies in Qingdao, Zhangjiagang, Shanghai and other places have reported that the sales of foreign cotton and port spot goods in the October/December shipping period have experienced three stages of “hot – mediocre – cold” in the past month, with rapid changes. It’s hard to keep up with the pace.
It is understood that the 2019/20 US cotton 31-3 36 (strong 28) quotations for customs clearance at Qingdao Port on November 2-3 were concentrated at 15500-15600 yuan/ton (basis quotation), while 2018 /The quotation of US cotton M 1-5/32 (strong 28GPT) in 2019 is 15150-15300 yuan/ton, and the price difference between the two narrowed to 200-300 yuan/ton; but the December shipping date is M 1-1/8 The quotation of Brazilian cotton has actually reached 15,300-15,450 yuan/ton (new cotton in 2020), and the price difference with US cotton has narrowed or even become the same; while the quotation of Indian M 1-5/32 (CCI auction) Indian cotton is only 14,400-14,600 Yuan/ton (in 2019/20), which is nearly 1,000 Yuan/ton lower than US cotton and Brazilian cotton of the same quality, and its competitiveness continues to rise. A cotton company in Henan said that with the large-scale launch of Xinjiang machine-picked cotton in 2020/21, the main ICE futures contract rising to 70 cents/pound, and the domestic sales of downstream textile and clothing terminals and foreign trade orders peaking and falling, the sales of imported cotton will come to an end. a paragraph. </p
