Since the National Day, the purchase price of Zheng Mian Relay seed cotton has increased “in a cheating manner”, and cotton spot, polyester staple fiber, cotton yarn, gray fabrics, etc. have successively “released satellites”. The cotton, textile and clothing markets can use “rising, big rise” To describe it as “extremely high”, Zheng cotton’s growth rate and intensity not only dwarfed other agricultural products and commodities, but also threw ICE, MCX and other cotton futures out of the market.
Unlike the main ICE contract, which is still cautiously testing the strong resistance level of 70 cents/pound, the upward breakthrough of the CF2101 contract is like “blowing melons and cutting vegetables”. The short sellers have no time to organize the strength to resist, and then collapse thousands of miles. Birds and beasts disperse. Some institutions and international cotton merchants judge that with the support of the crazy rise of Zheng cotton, weather speculation in the main cotton-producing areas of the United States, global food prices entering the mid- to long-term rise, and the continued easing of monetary policies in various countries, the upward trend of ICE will not change. The bottom will stand firmly at the 70 cents/pound mark, and the main force will attack again to challenge 72-75 cents.
From the survey, since late September, overseas year-end holiday orders suddenly arrived in large quantities (some of them were transferred and returned from India, Pakistan and other Southeast Asian countries and Brazil and other countries), and domestic purchasers were ” “Double 11” stocking and the “blowout” of orders in the spring and summer of 2021 are a key factor causing the general rise in floral gauze fabrics. However, with the surge in raw materials, cotton gauze, fabrics, etc., China’s textile and apparel exports are facing severe tests. On the one hand, in August/September Export orders for textiles and clothing may not be executed due to a significant increase in production costs. On the other hand, some foreign trade companies cannot find suppliers or manufacturers to process orders from Europe, the United States, ASEAN and other countries. The focus is on contract signing. Export companies and foreign buyers are unable to accept and digest the increased quotations from processing companies. Therefore, currently “there are many orders, but few can be received.”
Several foreign trade companies in Shanghai, Hangzhou and other places reported that October has entered the peak production and sales season for down jackets and medium-thick pants. However, some manufacturers of down jackets and other products in coastal areas have increased prices by 40%-50% and must pay in advance. Even for full payment, it is difficult for traders to find processing companies with “good supply quality and cheap prices”. “It is difficult to send out orders”, which makes foreign traders very passive (the manufacturer’s quotation rises every day), and the quotation is on the low side. Most of the export orders with low profits are abandoned; once the contract is confirmed, purchasing personnel need to be sent “non-stop” to contact the manufacturers and sign the processing contract clearly as soon as possible, fearing that other companies will “pry” or the processing party unilaterally requires price. In addition, due to concerns about significant fluctuations in the RMB exchange rate, export-oriented trading companies have also become cautious in accepting orders. The impact of the skyrocketing quotations of raw materials, yarns, fabrics, etc. on the entire terminal consumer market is gradually being reflected. After a short “honeymoon” period, the situation may turn sharply downward. </p
