It is understood that during the National Day holiday, the main December contract of ICE cotton futures fluctuated from 89.89 cents/pound to 86.45 cents/pound, while the domestic cotton spot price continued to stabilize. Foreign cotton imports under the 1% tariff and sliding tariffs The range of costs and Xinjiang cotton quotations has increased. Bonded cotton and cargo shipments have become more attractive to cotton-using enterprises with quotas. Inquiries and contract signings have gradually picked up. Buyers are still paying slightly more attention to 2022/23 Australian cotton and 2023/24 US cotton than cotton from other origins.
A medium-sized cotton company in Huangdao said that during the National Day, traders’ basis for Brazilian cotton M 1-1/8 in October/November/December shipping schedule was 9-9.5 cents/pound (2022/23 new cotton), although it was relatively The price will be reduced by about 1 cent/pound in mid-to-late September, but compared with the September/10/November shipping date of US cotton M 1-1/8 and Australian cotton spot M 1-1/8, the basis difference is 9.25-9.5 cents. / pound (2022/23 cotton), 9-10 cents / pound, Brazilian cotton has no advantages in terms of quotation, quality indicators, transportation time, etc. It is understood that the quantity of Brazilian cotton and Australian cotton arriving in Hong Kong since September has been relatively concentrated, while the 2022/23 US cotton storage volume and September/December cargo quotations have continued to decrease.
Judging from the survey, since the additional 750,000 tons of cotton import quotas with sliding quasi-tariffs issued in 2023 can be extended to be used before the end of February 2024, coupled with the stronger expectations for the appreciation of the RMB against the US dollar in the fourth quarter of 2023 and the first half of 2024, Therefore, Chinese cotton textile enterprises and traders are gradually releasing their enthusiasm for purchasing US cotton in 2023/24 (shipping dates are concentrated in December/January). The Australian cotton spot in 2022/23 is an important choice for traceability orders of mid-to-high-end cotton textile and apparel. Coupled with its high cost performance, import volume has shown a continuous and rapid rebound year-on-year. However, the situation of Brazilian cotton exports to China in 2022/23 is somewhat worrying. Exporters and traders need to make more concessions in terms of basis and contract terms, otherwise it will reach Expected difficulty.
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