According to feedback from cotton trading companies in Qingdao, Shanghai, Zhangjiagang and other places, driven by the decline of the US dollar index on April 28, the rebound of crude oil futures, and the restart of the economy, trade and transportation in the United States and some European countries, , so the main ICE cotton futures contract once again stood at 55 cents/pound, heading towards the 58 cents/pound mark.
On the 29th, the quotations of bonded, spot and customs-cleared foreign cotton in China’s main ports all picked up. Several large and medium-sized international cotton merchants not only increased the shipping schedules of May/June/July/August, The bonded 2019/20 US cotton quotations are strong, and the basis has slightly adjusted back to attract Chinese buyers to place firm orders around 55 cents/pound.
April 29, Qingdao Port June/July shipping schedule US cotton ME51-4 (51 -5 or 42-4) 36 net weight quoted 62.15-62.20 cents/pound (CNF), EMOT/MOT M 1-5/32 (ME 41-5 38) quoted 64.95-65.15 cents/pound; and 5/7 The monthly shipping date of M 1-5/32 Brazilian cotton is 65.35-66.35 cents/pound, which is about 0.40-1.0 cents/pound higher than the EMOT/MOT quotation. A large importer in Qingdao said that due to market rumors that Chinese trading companies will sign a large number of contracts to import U.S. cotton from May to September, U.S. cotton export companies and international cotton merchants have become more and more active since late April. On the one hand, they have increased their investment in Qingdao, Shipments from ports such as Zhangjiagang, Guangzhou, and Shanghai or transshipments in Southeast Asia; on the other hand, considering that the bonded and transit warehouses at ports are very tight, some foreign businessmen have made reservations in advance or have free storage capacity from June to September to prepare for the arrival and storage of cotton in large quantities. . In addition, in response to the procurement needs of several large cotton companies, we have increased the quotation of corresponding varieties and strived to complete the transaction as soon as possible.
On the 29th, Zhangjiagang, Qingdao and other places cleared the RMB base of US cotton ME 31-3 36 (strong 28GPT), Brazilian cotton M 1-1/8 and M36 (strong 28GPT) The price difference is 12550-12600 yuan/ton (CF2009 + basis, net, the same below), 12050-12100 yuan/ton, 12150-12200 yuan/ton, and the price difference remains at 400-500 yuan/ton.
Some small and medium-sized traders judge that as several large import companies gradually make inquiries and enter the market, customs-cleared foreign cotton is at a low level in terms of cost, selling price and sales channels. Disadvantages: The difficulty of shipment and timely payment will continue to increase compared with March and April; coupled with greater cash flow pressure in the first half of 2020 (cotton signed in December/January requires full payment), the imported cotton market in May may Ushered in the phenomenon of frequent sales and dumping of goods. </p
