According to statistics, as of August 27, there were only 8,886 Zheng Cotton warehouse receipts left, which was lower than the 5,957 receipts in the same period of 2019/20, a decrease of 40.13%. What needs more attention is that the warehouse receipts from July to August dropped significantly by 5,074 (equivalent to cotton About 215,600 tons), a decrease of more than 36.35%. Such a sudden decrease is rare, and the enthusiasm of textile companies and cotton traders in accepting orders can be seen.
Why has the Zheng Cotton warehouse receipts flowed out so rapidly in the past month, causing the pressure on firm sales to decrease significantly? The industry generally believes that there are four reasons: First, the quality and grade of warehouse receipts are relatively high. The proportion of high-quality Xinjiang cotton in 2020/21 has dropped significantly compared with the previous two years, while high-spinnability Xinjiang cotton that can be circulated in July and August is concentrated in warehouse receipts. Under the premise that the 1% tariff cotton import quota is in short supply and the sliding tax quota is small, receiving warehouse receipts has become the first choice for some enterprises spinning medium and high-count cotton yarn;
Second, cotton futures Hanging upside down gives textile companies the confidence to receive a large number of warehouse receipts. In August, Zheng Cotton experienced a roller coaster market, and cotton futures continued to trend upside down. From August 29th to 30th, the spot quotation of “Double 28” machine-picked cotton in Xinjiang’s supervision warehouse was 18,000-18,300 yuan/ton (including 3129, strong 28CN/tex), which was 500-700 yuan/ton higher than the recent month contract CF2109 disk price. ;
Third, the basis price of foreign cotton for customs clearance at the port is significantly higher than the market price of Zheng cotton. It is understood that although the quantity of high-quality US cotton, Brazilian cotton, and West African cotton in port bonded and customs clearance from July to August is relatively large, traders’ quotations are all Zheng cotton’s main contracts + basis, and the prices of US cotton and Brazilian cotton in customs clearance are higher than Xinjiang cotton spot price in 2020/21. At present, the fixed price of Brazilian cotton M 1-1/8 net weight in Qingdao, Zhangjiagang and other places is 18,700-18,900 yuan/ton, which is not only higher than the “Double 28” Xinjiang cotton spot in the mainland warehouse, but also higher than the CF2109 contract of 800-1,000 yuan/ton. It is relatively difficult for enterprises to receive customs clearance imported cotton from traders. </p
