According to feedback from cotton trading companies in Qingdao, Zhangjiagang and other places, the 700,000-ton sliding-duty cotton import quota for 2021 has been issued in batches, provinces, and one after another. Domestic cotton textile companies and middlemen have responded to shipments in July/December. , attention and inquiries about bonded cotton at ports are gradually heating up; some cotton companies have increased their quotations in RMB for bonded cotton.
However, as Zheng cotton exceeded 17,000 yuan/ton, the basis difference of traders such as Brazilian cotton, US cotton, and Indian cotton remained stable. Therefore, in addition to the “fixed price”, some transactions were completed. , shipments, customs clearance cotton basis sales and price transactions are relatively deserted.
A medium-sized cotton company in Zhangjiagang said that most of the US dollar spot basis at traders’ ports has not been adjusted in the past two days. The bullish sentiment in the market is relatively strong. On the one hand, under the sliding tariff, imports The direct cost of Brazilian cotton and U.S. cotton is 1,500-1,800 yuan/ton lower than that of “Double 28” Xinjiang cotton in mainland warehouses (non-trader customs clearance cotton quotes, textile companies import by themselves, the price difference is 100-200 yuan/ton wider than in early and mid-July) , the competitive advantage of foreign cotton is very prominent; on the other hand, governments of various countries continue to launch loose monetary policies, frequent rainfall and high temperatures and droughts coexist in many major US cotton producing areas, and textile companies/traders in Southeast Asia and China are consuming US cotton in the post-epidemic period. With the rapid rebound in demand and other good news, ICE may be just the first target if it breaks through 90 cents/pound, and there is a high probability that it will continue to reach new highs.
Judging from the survey, although the bonded + non-bonded cotton inventory in China’s main ports is currently at a high level, and the cotton reserves are highly welcomed by cotton-related companies, the US dollar quotations have been actively lowered so far. There are only a few cotton trading companies with high RMB quotation basis, and there are many operations of raising prices and chasing long prices.
Judging from the quotations of cotton merchants, on July 23, the “fixed price” of Brazilian cotton M 1-1/8 cleared at the port was stable at 17,900-18,050 yuan/ton (individuals Traders’ SM 1-5/32 quotations are as high as 18,350-18,450 yuan/ton), which is basically “in line” with or slightly higher than the “Double 28” Xinjiang cotton quotations from inland warehouses.
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