According to feedback from cotton traders in Qingdao, Zhangjiagang and other places, with the price of Zheng cotton CF2201 contract exceeding 18,300 yuan/ton and the main ICE contract approaching the 95 cents/pound mark, the price of port customs clearance cotton, bonded and cargo foreign cotton US dollar quotations have collectively risen sharply, and domestic cotton textile mills and middlemen have significantly cooled down their inquiry and purchasing sentiments. Some traders have become increasingly calm because the quotations of US cotton, Australian cotton, and Brazilian cotton are on the high side of the market at 200-300 yuan/ton.
A cotton company in Zhangjiagang said that currently cotton-related companies and speculators have relatively strong expectations for the continued rise in cotton prices inside and outside the market. In addition, Zheng cotton’s continued sharp rebound has led to a large number of high prices. Grade Xinjiang cotton warehouse receipts are locked, traders’ foreign cotton basis quotations remain stable, and the difficulty for downstream customers to accept and digest continues to increase compared with July. The company’s customs clearance of Indian cotton (especially cotton resources rotated out by CCI) has peaked and fallen in the past week, activity has declined, and buyers have a strong wait-and-see atmosphere.
Judging from the survey, in the first and middle of August, Zheng cotton and ICE prices rose, and the export of foreign cotton from the port accelerated. This was compounded by the increase in sea freight from May to July, shipping schedules and Due to multiple factors such as container tightness, the total cotton inventory at ports has declined. Brazilian cotton, Indian cotton and cotton from other origins have decreased to varying degrees. However, US cotton port inventories have bucked the trend and grown steadily.
An international cotton merchant judged that due to negative impacts such as Zheng Cotton and ICE’s continuous annual highs and early overdraft of cotton consumption, coupled with the shipping schedules of US cotton and Australian cotton from August to November , Brazilian cotton, etc. are relatively sufficient in quantity. After a short period of decline, port cotton stocks will bottom out and rebound, and sales pressure will not be effectively alleviated. According to traders’ quotations, the net weight quotation of customs clearance Indian cotton M 1 5/32 is 17800-18200 yuan/ton (quotes of 17600 yuan/ton and below are rare), while the “fixed price” of Brazilian cotton M 1 1/8 has been quoted as high as 18900-18200 yuan/ton. At 19,200 yuan/ton, the price of customs-cleared foreign cotton is not only strong, but also traders are generally reluctant to sell. </p
