According to the survey, as the prices of ICE and Zheng cotton continued to oscillate and rebound in April, the April/May shipping schedule, port bonded and customs clearance foreign cotton quotations continued to be in an upward channel (the main CF2009 contract rebounded from 10,470 yuan/ton to 11,750 yuan/ton) Yuan/ton, but currently most traders still use the CF2005 contract for basis quotations regardless of bonded cotton or Xinjiang cotton), and traders’ losses have narrowed.
As the growth of the COVID-19 epidemic in Europe and the United States slows down (many European countries have begun to study “unlocking” policies, economic activities will gradually resume), central banks of various countries have implemented various measures to alleviate the epidemic on the economy, production, consumption, trade, transportation, etc. Due to the impact of the epidemic, the “helicopter money” model has been launched one after another, and global cotton consumption will press the “on button”. Therefore, the anxious and panic mentality of cotton export companies, international cotton merchants, and import agencies has gradually subsided in stages. Port cotton inquiries, transactions, and shipments began to slowly recover from April.
On April 14, the price of 2019/20 US cotton 31-3 36 (strong 28GPT, horse value G5) in Qingdao, Zhangjiagang and other places was 12550-12600 yuan/ton (net weight settlement, the same below); and The quotations of M 36 (strong 28GPT) and M 1-1/8 (strong 28GPT) Brazilian cotton are 12150-12180 yuan/ton and 12000-12100 yuan/ton respectively; the quotations of SM 1-5/32 Indian cotton are 11780-11800 yuan/ton. tons. In comparison, although U.S. cotton has advantages in quality, spinnability, consistency, foreign fiber content and other indicators, its price is at a disadvantage compared with Brazilian cotton and Indian cotton.
Some cotton companies reported that since late March, the enthusiasm and quantity of U.S. cotton customs clearance for 2019/20 have picked up slightly compared with previous weeks, mainly high-quality cotton such as 31-3 36 and 31-3 38. . It is understood that the foreign cotton arriving, delivered and warehoused in Hong Kong since April has been mainly American cotton, Indian cotton and West African cotton. The quantity of Brazilian cotton, Australian cotton, Uzbek cotton and other imported cotton has continued to decrease compared with the previous two months. The port Cotton inventories remain stable overall, and pressure is gradually easing. </p
