According to cotton trading companies in Qingdao, Guangzhou, Zhangjiagang and other places, due to the continuous upward breakthroughs in the main contract of Zheng cotton in the past week or so, the basis price quotations of cotton from origins such as Brazilian cotton, West African cotton, India, Greece and Spain and ” “Fixed price” subsequently increased significantly, and the enthusiasm of downstream cotton textile mills and middlemen for inquiry and purchase of goods has significantly cooled down; only a small amount of Indian cotton, Sudan cotton, and Mexican cotton in 2018/19 have scattered transactions due to the relatively weak increase. (The length is mostly 1-1/8 and below, strong 27GPT).
On January 7-8, Qingdao Port’s 2019/20 net weight delivery quotations for M 1-1/8 (strong 28GPT) and M 36 (strong 28GPT) reached 13,900-14,100 yuan/ton and 14,400 respectively. -14,500 yuan/ton; the net quotation of 2018/19 SM 1-1/8 West African cotton (Mali, Burkina Faso, Benin, Cote d’Ivoire) is 14,200–14,300 yuan/ton; while the 2018 Indian cotton M 1 -1/8 (strong 29GPT, horse value G5) net weight quotation is 13800-14050 yuan/ton. Due to the slightly higher price/performance ratio, and the fact that some traders plan to ship goods quickly and receive payment quickly, the bargaining space reaches 50-150 yuan/ton, which has attracted the attention and even favor of cotton-using enterprises. In addition, some traders quoted Australian cotton SM 1-5/32 in 2019 at 15,800-15,900 yuan/ton, which was only 300-400 yuan/ton higher than half a month ago. The increase was significantly lower than Brazilian cotton, West African cotton, and Indian cotton. So shipments have improved slightly.
From the quotations and statistics of foreign businessmen and trading companies, the shipping schedule in December/January/March The quantity of US cotton in 2019/20 and 2018/19 is relatively large; coupled with the concentrated arrival and delivery of Brazilian cotton and West African cotton in 2019, it is expected that port stocks (including bonded and customs clearance) will bottom out and stabilize in the near future After that, the rebound accelerated, and the pressure on bonded warehouse capacity not only rebounded, but also the storage fees will be increased.
An importer in Qingdao said that by the end of January, Qingdao Port’s foreign cotton inventory may be close to 300,000 tons again, due to the continued improvement in Sino-US trade negotiation sentiment and the resonance supply of ICE and Zheng cotton. The expectation of price increase is strong, so most traders are not in a hurry to ship goods or clear positions. </p
