It is understood that on May 18-19, Qingdao, Zhangjiagang and other places cleared customs for 2019/20 US cotton ME 31-3-36 (strong 28GPT), Brazilian cotton M 36 (strong 28GPT), and Indian cotton M 1-5 The quotations for /32 are 12,800-12,900 yuan/ton, 12,400-12,500 yuan/ton, and 11,950-12,000 yuan/ton. The overall price is 200-300 yuan/ton higher than last week, and the price of Xinjiang cotton in the mainland continues to be “upside-down”. increase.
A cotton trading company in Qingdao said that although the bonded + non-bonded cotton inventory at the port has continued to rise slightly since May, continuing the state of “more incoming warehouses and less outgoing warehouses”; although the cash flow of cotton companies is generally tight , it is difficult to withdraw payment and secure the goods in the short term, but international cotton merchants and domestic import companies are more willing to jointly support and raise prices.
The cotton company judged that as of late May, the total cotton inventory in Qingdao Port had been close to or even exceeded 400,000 tons, but the supply was mainly concentrated in the hands of several large and medium-sized international cotton merchants and import trading companies. Small traders and middlemen store less goods due to shortage of funds, quota restrictions and the “inversion” of domestic and foreign cotton prices, so as to minimize risks as much as possible.
Recently, some traders have reported that the number of customs clearance of bonded US cotton has increased in 2019/20, mainly in lengths of 1-3/32 and above, and textile mills have their own import quotas of 1% for procurement. . On the one hand, with Europe and the United States gradually restarting their economies and the Federal Reserve cutting interest rates and the U.S. government’s massive fiscal stimulus, the U.S. financial and stock markets have rebounded sharply, and commodity futures have entered a recovery channel; on the other hand, the appreciation of the RMB has led to a decline in the cost of U.S. cotton imports, and textile companies, trade Shang chooses the opportunity to act. The U.S. non-agricultural data hit a new low in May, and the U.S. dollar index closed slightly lower. Coupled with the effective communication between China and the U.S. trade representatives and other positive factors, the RMB continued to appreciate.
However, the recent changes in Sino-US trade relations require great attention. This week, we need to pay attention to the changes in the attitudes of both sides towards trade and beware of the risk of exchange rate changes caused by this uncertainty.