According to feedback from cotton trading companies in Qingdao, Zhangjiagang, Guangzhou and other places, since February 15, bonded and non-bonded cotton stocks in China’s main ports have declined in unison, and bonded Brazilian cotton, West African cotton, and US cotton have declined slightly; while “material The inquiry/shipment of Indian cotton (including CCI resources) in 2020/21, which is not beautiful and cheap, is significantly weaker than that of cotton from other origins.
A medium-sized cotton trading company in Qingdao said that as the main ICE cotton futures contract has recently broken through the 120 cents/pound, 118 cents/pound, and 116 cents/pound mark (the intraday low of 115.86 cents/pound on February 25 ), the price difference between domestic and foreign cotton has widened rapidly again (direct import cost under 1% tariff); in addition, after the Spring Festival, some large and medium-sized cotton textile companies have gradually released their enthusiasm to replenish their stocks at low prices, and considering that the Brazilian cotton planting area will increase significantly in 2021/22 Increase, output and export volume are expected to increase significantly. Some traders have increased the black-box operation of bonded/customs cleared Brazilian cotton sales, and the bargaining space has expanded. Therefore, the length of the port bonded warehouse is 1-1/8 and above, and the strong 28GPT and above are medium and high quality Brazilian cotton. , US cotton shipments are relatively active.
In addition to the continuous oscillation and diving of ICE futures and the substantial rebound in the attractiveness of foreign cotton quotations, there are also the following factors that have stimulated the outflow of port cotton stocks to be significantly greater than the incoming in the past half month:
On the one hand, entering mid-to-late February, some cotton spinning companies have concentrated on using the remaining cotton import quotas within the 1% tariff in 2021 to overcome barriers. Some cotton traders provide advance customs declaration services for purchasing companies whose quotas are about to expire (customs clearance of cotton first, and then negotiation of specific purchase quantities and contract prices); on the other hand, due to the cost of imported cotton yarn from India, Pakistan and other origins since 2022 and the price of domestic yarn Continue to hang upside down, and then consider that in 2022, brands/importers such as the United States and EU clothing brands may continue to make a fuss about the ban on Xinjiang-related products. Therefore, purchasing port bonded cotton and customs-cleared cotton at bargain prices is conducive to receiving orders, arranging orders, and delivering goods; furthermore, , as the CF2205 contract price fell below 21,000 yuan/ton, the port customs clearance of US cotton and Brazilian cotton showed a clear rebound in basis price transactions last week.
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