According to the survey, driven by the main ICE cotton futures contract exceeding 60 cents/pound this week, both the 6/9 shipping date and the spot quotations of bonded US cotton, Brazilian cotton, West African cotton, etc. all responded to the sharp rise, including Buyers from China, Vietnam, Indonesia and other countries are in a wait-and-see mode, especially the transactions of high-quality and high-grade foreign cotton have continued to slow down. A cotton company in Qingdao reported that since late May, international cotton merchants and import companies have significantly increased their quotations for bonded and customs-cleared Indian cotton in 2019/20, but the supply of S-6 in Gujarat is relatively small, with J34 or other origins and varieties accounting for more than 85%.
On June 3, the June/July shipping schedule in Qingdao, Zhangjiagang and other places ME 41-5/41-4/51-4/51-6 36/37 (strong 29/30GPT) quoted 66.50 -67.50 cents/pound; June/July/August shipping date M 1-1/8 Brazilian cotton quotation is 67-67.80 cents/pound, US cotton and Brazilian cotton quotations are tightening and “in line”; while in 2019/20 The quotation of M 1-5/32 Indian cotton has also reached 66.20-66.70 cents/pound. Therefore, judging from the quotations of cotton traders, the price difference between Indian cotton, Brazilian cotton and US cotton has narrowed significantly to 0.5-1.5 cents. /pound.
The price competitiveness of Indian cotton is weak, mainly due to the continuous rebound of MCX futures driven by ICE breaking 60 cents/pound, the locust plague in the main cotton-producing areas, and the resumption of work and production by Indian cotton companies. Some small and medium-sized cotton textile companies in Shandong, Jiangsu, Henan and other places have directly contacted Indian ginners and exporters. Although the purchase price has been reduced to a certain extent, the risks to the quality of loaded Indian cotton and contract execution are also relatively high.
Currently, the net weight quotations for customs clearance of 2019/20 Indian cotton M 1-5/32 (strong 29GPT) in various major ports in China are concentrated at 11,800-11,900 yuan/ton (CF2009 + basis difference, and Indian cotton basis difference is large At 30-130 yuan/ton); while the RMB quotations of M 1-/8 Brazilian cotton and US cotton ME 31-3 36 are 12450-12500 yuan/ton, 12800-12850 yuan/ton; Indian cotton and US cotton of the same quality The price difference remains at around 1,000 yuan/ton; the price difference with Brazilian cotton is 500-700 yuan/ton; in addition, some traders are selling S-6 cotton in 2018/19 due to inquiries about customs clearance of Indian cotton in the past half month. The transaction situation is better than that of spot and cargo. </p
