According to feedback from cotton traders in Qingdao, Zhangjiagang, Shanghai and other places, due to the long-term high temperature and drought in Texas in the United States in 2022, recent floods in some cotton areas, and continuous precipitation in the southeastern cotton area/central-south cotton area, cotton growth is slow, cotton bolls fall, The rot phenomenon is increasing. Therefore, on the one hand, the industry is worried about the postponement of the 2022/23 US cotton harvest and launch period, the decrease in shipment quotations from exporters and traders in December/January, and the increase in cargo resources in February/March/April; on the other hand, Concerns about the quality indicators of U.S. cotton in 2022/23 have also increased significantly. Especially for large and medium-sized cotton textile companies that spin high-count and high-quality cotton yarns, inquiry/signing intensity has weakened, and wait-and-see sentiment has increased.
A cotton enterprise in Zhangjiagang said that considering that the resources of 31-3/31-4 37/38 (strong 28/29GPT) and above high index and high spinnability in the US cotton currently cleared by customs are relatively sufficient, plus Jiangsu, Zhejiang, Guangdong, etc. Foreign trade companies/textile and clothing enterprises in coastal areas have reported that not only are the requirements for traceability orders getting higher and higher, but they are still mainly “short orders, small orders, and urgent orders” (there are fewer medium and long-term orders). Therefore, although international cotton merchants, Cotton trading companies are rushing to offer quotations to sell U.S. cotton cargoes in 2021/22 and 2022/23. However, cotton spinning mills and middlemen do not buy it. They still purchase spot cotton with customs clearance at the port according to orders, and are not very interested in bonded cotton and far-month cargoes.
On August 30-31, Qingdao Port 31-3/31-4 37/38 (strong 28/29) customs clearance of US cotton “fixed price” 21,000-21,400 yuan/ton; while Brazilian cotton M 1-5/32 “fixed price” The price is about 20,500-20,800 yuan/ton. An international cotton merchant reported that due to the large variables in the harvest, shipment, and delivery time of U.S. cotton in 2022/23, the RMB exchange rate continued to depreciate against the U.S. dollar; coupled with sufficient rainfall in the main cotton-producing areas, the U.S. cotton shipped in the early stage Or it may have the characteristics of high moisture, high impurities, and deviation in consistency. Therefore, most sellers recommend that customers try to sign contracts and purchase resources with shipping dates in February 2023 and beyond to avoid disputes due to inability to deliver in time or indicators that do not meet the contract requirements. Claims etc.
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