According to feedback from private cotton companies in Gujarat, Maharashtra and other places in India, with the southwest monsoon arriving more than a week in advance and advancing rapidly, coupled with the overall lowering of India’s epidemic prevention and control levels, rural areas are also quickly unblocked , so cotton planting has been in full swing in the cotton areas of northern, central and southern India since early June (according to statistics from the Indian Meteorological Department, since this year, the monsoon has brought 25% more rainfall than normal).
At present, it is still difficult to judge the increase or decrease in cotton planting area in India in 2021. On the one hand, since the outbreak of the global epidemic in 2020, the prices of crops such as corn, rice, soybeans, and peanuts have risen sharply. Farmers have high expectations for rice and Oilseeds are interested; on the other hand, the recent CCI floor price has only risen but not fallen, MCX has risen and cotton spot prices have continued to rise. Farmers are hesitant to adjust the crop planting structure. From a time perspective, June to August is the peak period for cotton planting in India, and it is too early to draw conclusions about the changes in planting area this year (reports say that the cotton planting area in Gujarat may increase by 5%-10%).
It is understood that the cotton benchmark prices for 2019/20 and 2020/21 in the CCI listed sales benchmark prices on June 23 were both increased by 200 rupees/kandi compared with mid-June. The listed volume is 4,000 tons in 2019/20 and 11,000 tons in 2020/21. Affected by the increase in the CCI bidding floor price, domestic cotton spinning companies in India accelerating the resumption of work and production and receiving a large number of orders/orders, and the Indian government’s increase in tariffs on imported cotton, the spot quotations of Indian cotton have been firm in the past week, and some high-quality and high-grade cotton prices have been strong. Cotton basis has slightly increased.
Judging from the quotations of domestic cotton merchants, the basis difference of bonded M 1-5/32 Indian cotton in Qingdao, Zhangjiagang and other ports is concentrated at 4-4.5 cents/pound, and CCI has rotated out resources M 1-5/ 32 basis difference 4.5-5 cents/pound. A cotton company in Zhangjiagang stated that currently in major domestic ports, Indian M 1-5/32 accounts for about 80% of the total Indian cotton bonded and customs cleared cotton, and there is very little Indian cotton of M 1-1/8 and below grades; 5 /The inquiry and shipment situation of Indian cotton quoted in US dollars in June is better than that of Brazilian cotton. First, the basis difference between Indian cotton and Brazilian cotton is 4-5 cents/pound with the same commodity inspection index, which shows the cost-effective advantage of Indian cotton; second, 4/ Since May, the bonded volume of Indian cotton has continued to rise, and indicators such as grade, quality, impurity content and consistency have increased significantly compared with the first quarter (mainly mid-term cotton), which is more consistent with the needs of domestic cotton spinning mills. </p
