Affected by the new coronavirus pneumonia epidemic and the Chinese New Year holiday, the international spot market transactions have been flat since the end of January. There is a small amount of Australian cotton old flower transactions. The loading period is the first quarter. The buyer is Thailand, and The basis difference is very high, which may indicate that the global supply of high-grade cotton has begun to tighten. At the same time, the transaction price of low-grade US cotton and Brazilian cotton in Asia’s main ports is below 70 cents, and the price of mid-grade cotton is below 80 cents.
Indian cotton export quotations are still the lowest in the world, but they are not enough to make US cotton buyers change their minds. Last week, the basis of India’s S-6 1-1/8 spot quotation was 450 points. China has signed nearly 700,000 bales of Indian cotton, of which about 300,000 bales have been delayed in shipment due to the pneumonia epidemic. Due to problems with the quality of Indian cotton, Bangladesh mainly imports high-grade West African cotton, but overall it still buys it as it is used, so it should purchase more in the future. Pakistan purchased about 1 million bales, mainly low-priced and high-quality, and American cotton was more popular.
At present, there are still about 500,000 tons of old cotton in stock in the origin of Brazilian cotton, mainly 31-4-36. Although West African cotton has sold well this year, there should still be 40% unsold, that is, Approximately 450,000 tons. The supply of high-grade cotton in the United States has begun to tighten, and the supply of high-grade cotton in other regions cannot keep up. Therefore, high-grade cotton may be very popular in the future.
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