According to feedback from cotton trading companies in Qingdao, Zhangjiagang and other places, affected by the recent continuous sharp decline of ICE cotton futures and the continuous sharp correction of Zheng cotton, inquiries and attention for May/June cargo and bonded cotton have increased since last weekend. has rebounded, and the point-price transactions of bonded cotton and customs-cleared cotton quoted in RMB have increased significantly, and the order resources and basis difference resources of some traders have also increased accordingly; while in early May, the “fixed price” sales of some goods were Relatively bland.
A medium-sized cotton company in Huangdao said that the current price point transactions are concentrated in Brazilian cotton, American cotton and a small amount of medium and high-quality Indian cotton. However, due to too few customs clearance quantities, West African cotton and Australian cotton Cotton has been left out by domestic cotton mills and middlemen because of its high quotations. From May 18th to 19th, the net weight quotations of Indian cotton M 1-5/32 and Brazilian cotton M 1-5/32 in Qingdao Port were concentrated at 15800-16000 yuan/ton and 16800-17000 yuan/ton, while Australian cotton SM 1 -5/32 quotations are as high as 18,000-18,500 yuan/ton.
From a survey of cotton spinning enterprises in Shandong, Jiangsu, and Henan, ICE futures fell back to 80-85 cents/pound and entered the buyer’s psychological expectation range in mid-to-late May. Some cotton-consuming enterprises have a need to replenish their stocks, and the cotton inventory at the port is close to being exhausted. Buyers have a lot of room for selection and negotiation. The quantity of US cotton, Brazilian cotton, West African cotton, and Indian cotton is also sufficient for the May-July shipping schedule. However, the following three factors have a greater impact on buyers:
First, the 1% tariff cotton import quota is extremely scarce. Currently, only some large and medium-sized textile companies and import companies still have 1% tariff. % of the quota, it is expected that the 700,000-ton sliding tariff quota will be issued as soon as possible; second, the RMB exchange rate fluctuates widely, and it is still difficult for enterprises to lock foreign exchange or use financial instruments provided by banks and financial institutions to avoid risks; third, the spread of foreign epidemics The risk of geo-conflicts in some regions such as the Middle East and the Middle East has intensified. Not only has shipping freight increased sharply, but containers and shipping space have also become very tight, and there is uncertainty about whether cargoes can be shipped and arrived at the port in time. Fourth, the central bank has tightened monetary liquidity in stages, and some The credit difficulty of textile enterprises has increased, which has recently affected businesses such as letters of credit. </p
