Recently, the market price of Zheng Cotton CF2201 contract has continued to rebound, and the inversion range of cotton futures has accelerated and narrowed. Some cotton traders and Xinjiang ginning companies have significantly increased their sales enthusiasm, and the quotations and pending order resources have continued to grow.
Judging from the survey, from January 11 to 12, the quotations for “double 28” grade machine-picked cotton in Xinjiang’s supervision warehouses were concentrated at 22,600-22,700 yuan/ton (100-200 yuan/ton due to different specific quality indicators, impurity content, and warehouses) price difference of RMB/ton). In Jiangsu, Shandong, Henan and other inland warehouses, the price of Xinjiang’s “Double 28” grade machine-picked cotton in 2021/22 is 23,100-23,300 yuan/ton, and the price difference between cotton inside and outside Xinjiang has dropped from 800-1,000 yuan/ton to 400-600 yuan/ton.
Since mid-December, Xinjiang cotton road and rail shipments have gradually resumed, and the supply of high-quality cotton from inland warehouses in 2021/22 has increased significantly. According to statistics, the total volume of cotton shipped in December increased by 12% month-on-month, showing a trend of “increasing highways and decreasing railways”. Due to the reduced intensity of epidemic prevention and control in Gansu, Shaanxi and other provinces, the increase in the number of return vehicles from the mainland, and the continued implementation of direct subsidies for the transportation of Xinjiang cotton out of Xinjiang in 2021/22, the cost of cotton relocation has declined.
Several cotton companies in Aksu, Korla and other places said that since January, the transactions of “Double 29” machine-picked cotton with low impurities and high uniformity have improved somewhat, and traders’ inquiries and delivery have shown a short-term “tail-lift” phenomenon, but in southern Xinjiang It is more difficult to ship hand-picked cotton on “Double 28 and Double 29”. Traders, futures companies and cotton spinning mills rarely have plans to replenish their stocks before the Spring Festival. At present, the spot quotation of hand-picked cotton is still 200-400 yuan/ton higher than that of machine-picked cotton. There is no advantage in hedging with Zheng cotton and traders do not favor it. Judging from the public inspection, although the hand-picked cotton in 2021/22 has better indicators such as length and breaking strength, the uniformity is generally not high, and buyers are worried that it is not conducive to spinning high-count yarns.
</p
