Since August, domestic cotton prices have continued to fluctuate and move up. Yesterday, because investors were worried that tropical storms “Marco” and “Laura” approaching the main US cotton-producing areas would cause damage to cotton in the area, ICE US cotton futures Climbing more than 2% to a nearly six-month high, the main ICE December contract rose 1.54 cents to settle at 65.82 cents per pound. U.S. cotton broke through and rose, and Zheng cotton also opened higher in night trading. The main CF2101 contract ended its multi-day consolidation and stood at the 13,000 yuan/ton mark. Cotton futures at home and abroad have risen, which seems to have once again added impetus to the market that is looking forward to recovery in September.
According to foreign businessmen and middlemen at ports in Qingdao, Zhangjia, Shanghai and other places, the shipment of imported cotton has accelerated since last week. In particular, shipments of mainstream varieties Indian cotton and Brazilian cotton have increased significantly, and the scale of some orders has also increased. According to the investigation, there are mainly the following reasons for why such a scene occurs:
1. The epidemic prevention and control in Xinjiang is strict, it is difficult to find vehicles leaving Xinjiang, and the railway transportation cycle out of Xinjiang is too long, resulting in the migration of cotton from Xinjiang. The difficulty increases in the mainland of the library, and some imported cotton has obvious price advantages and flexible procurement and shipping, which has attracted textile companies to increase purchasing demand.
2. The United States has included some Chinese companies on the entity list, which has caused some foreign trade companies to worry about foreign restrictions on the origin of raw cotton. Therefore, they have reduced operational risks by increasing the supply of foreign cotton.
3. Futures prices are gradually rising, and some textile companies are replenishing inventory appropriately in order to lock in production costs in advance. With the recovery of some foreign trade orders, export companies have increased rigid demand for high-grade resources such as Brazilian cotton and U.S. cotton. Moreover, the traditional domestic peak season is approaching. In order to avoid concentrated competition with domestic sales companies, it is necessary to replenish the inventory in advance or to increase the current yarn supply. The best decision for the factory.
After both domestic and foreign cotton futures rose yesterday, the spot price of foreign cotton also increased today. The price of Indian cotton 1-5/32 is 12,100 yuan/ton, and the price of Brazilian cotton 1-1/8 is around 13,000 yuan/ton, which is an average increase of 100-200 yuan/ton from yesterday. The spot price has increased, but it has not affected the port’s enthusiasm for purchasing. Inquiries are still relatively active today.
Although domestic cotton transactions are not as active as foreign cotton at present, as futures prices gradually move up, the mentality of enterprises has improved and quotations have also increased. When new cotton has not yet been put on the market and the supply of old cotton is limited, September may be an excellent window period for cotton companies to sell cotton intensively. Under the premise of many uncertain factors, “taking it easy” is still the best policy. </p
