According to quotations from cotton traders in Qingdao, Zhangjiagang and other places, the quotations for customs clearance of Indian cotton M 1-5/32, US cotton 31-3-36 and Brazilian cotton M 36 in 2019/20 are 11,700-11,900 yuan/ tons, 12,800-12,900 yuan/ton and 12,500-12,600 yuan/ton (net weight settlement). The price difference between Indian cotton and US cotton of the same grade and quality is more than 1,000 yuan/ton, which is 600-800 yuan/ton lower than Brazilian cotton.
An international cotton merchant in Qingdao said that despite the current raging COVID-19 epidemic in Brazil, the economy, trade, and transportation , exchanges, etc. have been greatly affected, but the quotations and quantities of Brazilian old cotton with shipping schedules in June/July/August and 2020/21 new cotton with shipping schedules in September/December are relatively large, and they are M-grade and 36 in length. Mainly high-quality and spinnable lint cotton with -37 and breaking strength of 28-31GPT, which is a strong substitute for Australian cotton, US cotton C/A, etc.; in addition, since June, the basis difference of Brazilian cotton in 2019 and 2020 has been The continued weak correction has attracted attention, inquiries and orders from yarn mills in China, Vietnam, Indonesia, Pakistan and other countries (the quotation is ICE2007 + basis).
On June 30, Qingdao Port quoted Australian cotton SM 1-5/32 for the June/September shipping period at 77.20-78.20 cents/pound (basis 1850-1950 points , CNF price); the basis difference is 300-400 points lower than that in early June. Although it is still slightly higher than the upper limit of cotton textile enterprises and traders, the progress of Chinese buyers signing contracts and purchasing is not slow. On the one hand, the output of Australian cotton in 2020 is very low and some Chinese cotton textiles are highly dependent on high-quality commercial grade Australian cotton. On the other hand, it is affected by the epidemic and the relatively tense relations between China, the United States, and China (India’s reliance on Chinese goods A boycott was launched, and a large number of Chinese containers were stranded in Indian ports). Therefore, the industry expects that in addition to the first phase of the Sino-US trade agreement, textile companies and traders need to be cautious when purchasing US cotton/Indian cotton “shipments”.
It is reported that Qingdao Port’s January/March shipping date for 2020/21 M 1-1/8 US cotton quotations are concentrated at 67.70-68.70 cents/pound, which is the same as that of 9/12 The quotation of Brazilian cotton M 1-1/8 in 2020/21 is basically “in line”. Since the shipment period of Brazilian cotton is 1-2 months earlier, and domestic Xinjiang cotton will be available in large quantities after November, there is currently no US cotton in Yuanyue. What a competitive advantage. </p
