From the quotations of traders in Qingdao, Zhangjiagang, Shanghai and other places, the net weight quotation of 2019 Brazilian cotton M36 (strong 28GPT horse value G5) on February 9th and 10th was 13800-13850 yuan/ tons (basis quotation); the net weight quotation of 2018/19 West African cotton SM 1-1/8 (strong 28GPT, mainly produced in Mali, Benin, Burkina Faso and other places) is 13,900-14,000 yuan/ton, respectively, compared with 2 At the beginning of the month, prices were raised by 700-800 yuan/ton and 400-500 yuan/ton.
Supported by the gradual control of the new coronavirus pneumonia in China, the increase in the daily rotation plan of cotton reserves from 7,000 tons to 18,000 tons, and the gradual resumption of work by various cotton textile companies in mid-February, the Zheng Cotton CF2005 contract has been lifted from the market. The mid-to-low 12,130 yuan/ton continued to rebound to 13,200 yuan/ton. The panic among investors, cotton-related enterprises and cotton consumer terminals continued to subside and confidence rebounded; in addition, ICE cotton futures once again stood at 68 cents from February 4-6. / pound, the global supply of high-grade and high-quality cotton is showing signs of tightening, which keeps the bullish goals of international cotton merchants and domestic import companies unchanged.
Several foreign businessmen and traders reported that since mid-December, the number of U.S. cotton arriving and entering bonded warehouses in 2019/20 at major ports in China has continued to increase slightly, with ME, EMOT/MOT being the majority, and the colors The grades are mainly 41-4, 42-4, and 51-4, but the proportion of strong 28GPT and below is relatively high; while the proportion of US cotton with strong 28-30GPT in the 1/2/3 shipping period has increased significantly. Considering that the pneumonia epidemic in China has not yet reached an inflection point, the procurement of raw materials by textile companies will be delayed, and China’s signing of contracts to import US cotton in December/January is not strong. In addition, the inventory of foreign cotton in China’s main port is relatively large, so some cotton merchants have slowed down or even suspended the shipment of US cotton. (Concerns about the epidemic dominate).
On February 10, Qingdao Port EMOT 41-4 (length 32-33, strength 28GPT) quoted 70.7-71 cents/pound; ME 51-4 (or 51-5, length 37, strength 29 -30GPT) quoted price is 73.40-73.60 cents/pound (both CNF quotes for January/February/March shipping date). An international cotton merchant said that after the epidemic is effectively controlled, according to the first phase of the China-US trade agreement, China is expected to take multiple measures such as increasing import quotas and lowering tariffs to stimulate cotton-using companies to sign a large number of contracts to import US cotton in 2019/20. Therefore, it is a wise choice for cotton merchants to hold on to their stocks and wait to sell.
</p
