According to feedback from cotton traders in Henan, Hubei, Shandong and other places, from July 19th to 20th, the main contract of Zheng cotton fell from 16,975 yuan/ton to the lowest point of 16,380 yuan/ton, and some cotton spinning companies used price-point trading and other methods. Vigorously replenishing the warehouse, Xinjiang cotton resources in the mainland warehouse and Xinjiang supervised cotton cotton transactions are very active. As the CF2109 contract price quickly rebounded to over 16,800 yuan/ton, textile enterprises’ inquiries and transactions decreased significantly, and procurement came to an end.
On July 21-22, the “Double 28” Xinjiang cotton quotation in Henan, Shandong, Hebei and other inland warehouses was 17,300-17,500 yuan/ton, taking into account the metric and net weight The difference is 300-400 yuan/ton lower than the same quality Brazilian cotton (M 1-1/8), and 500-700 yuan/ton lower than the 31-3 36/37 US cotton quotation. Due to the tight 1% tariff cotton import quota and The inventories of Brazilian cotton, US cotton, and Indian cotton continue to decline after customs clearance at ports. Therefore, traders are willing to support prices and are reluctant to sell.
Henan Cotton Mill stated that due to heavy rainfall in Zhengzhou and surrounding areas, not only the life, production and cotton yarn sales of the cotton mill were affected to varying degrees (operations were suspended in some areas), Moreover, a small number of cotton warehouses in Henan have also suspended cotton warehousing and warehousing operations (all-out efforts to fight floods and provide disaster relief), and textile companies have been restricted in picking up goods. A medium-sized yarn mill promptly sent purchasing personnel to Qingdao Port to sample, test, and purchase 2020/21 US cotton and Brazilian cotton as a transition. According to the survey, the current production and sales of cotton spinning mills in most areas of Henan are basically normal, the quotations of cotton yarn have not been adjusted, and the procurement and transportation of raw materials are proceeding in an orderly manner.
As the main contract of Zheng Cotton consolidates between 16,500 and 17,000 yuan/ton, the oscillation range continues to narrow, and cotton spinning enterprises have once again returned to “buy as you use, watch more and move less” The short-term state reserve cotton and Zheng cotton warehouse receipts are more attractive than Xinjiang cotton spot. However, the quotations of U.S. cotton and Brazilian cotton that have been cleared at the port are somewhat high, and textile companies are not very interested. </p
