According to feedback from cotton trading companies in Qingdao, Shanghai, Zhangjiagang and other places, although the main contract of ICE cotton futures this week peaked at 87.98 cents/pound and fell below 85 cents/pound again, domestic and foreign cotton prices continued to rise. Expanded slightly (calculated based on the Cotlook A index of 95.40 cents/pound on May 23, the price difference between domestic and foreign cotton returned to more than 500 yuan/ton), but domestic cotton textile companies and middlemen have made inquiries about bonded cotton/far month shipments, The willingness to place real orders is still not strong, and the wait-and-see atmosphere in the foreign cotton spot market is relatively strong.
A cotton company in Jiangsu said that ICE fell below 85 cents/pound. Except for a few traders whose cotton holding costs are relatively high and capital flow pressure is slightly greater, they are still actively quoting and placing orders in the hope of speeding up shipments. Most cotton companies have relatively high prices. There is a strong intention to support prices, and the basis differences of U.S. cotton, Brazilian cotton, Australian cotton and other resources have not been adjusted.
On May 23-24, bonded Brazilian cotton M 1-1/8 (strong 28GPT) in Qingdao Port quoted a net weight of 95.90-96.40 cents/pound, and the direct import cost under 1% tariff was 16,500-16,600 yuan/ton; bonded US cotton The net weight of EM M 1-1/8 (strong 28GPT) is quoted at 97.50-97.80 cents/pound, and the import cost under 1% tariff is about 16770-16810 yuan/ton, while the “Double 28” Xinjiang machine-picked cotton in Jiangsu, Shandong and other inland warehouses The quotation by weight is 16,800-17,000 yuan/ton, and the price difference between domestic and foreign cotton is 500-700 yuan/ton.
According to the survey, due to the recent continuous rebound in the weekly market volume of Indian cotton (the market volume in the first three weeks of May was 43,600 tons, 58,700 tons, and 62,500 tons respectively) and the decline in the operating rate of yarn mills in South India, Australian cotton exports to India have increased sharply. Affected by growth and other factors, the prices of S-6, J34 and other products in India have recently been continuously reduced, which has attracted the attention of some Chinese cotton companies and importers, and inquiries for Indian cotton in 2022/23 have increased. At present, all major ports in China have cleared Indian cotton M 1-5/32 and Sudanese cotton M 1-1/32 (hand-picked). The net weight quotations are 16800-16900 yuan/ton and 16200-16300 yuan/ton respectively. Indian cotton is quoted in RMB. It is only 200-300 yuan/ton lower than Brazilian cotton, which has no advantage. Supported by high costs and small inventory, traders are not very enthusiastic about cutting prices and selling goods.