According to feedback from cotton trading companies in Qingdao, Shanghai, Zhangjiagang and other places, since last week, with the ICE cotton futures May contract rebounding at 80 cents/pound, the Zheng cotton CF2309 contract has also exceeded 14,500 yuan/ton and 14,700 yuan/ton. tons, some traders’ US dollar quotations for bonded foreign cotton and customs-cleared cotton prices have increased slightly. The recovery in the production and sales rate of domestic yarns using US cotton/Brazilian cotton/Australian cotton spinning 40S, 50S, and 60S in April has also given cotton companies a certain degree of confidence. Boost confidence.
On April 10-11, the fixed price of Brazilian cotton M 1-1/8 cleared at Qingdao Port was concentrated at 16,150-16,800 yuan/ton, and the fixed price of US cotton 31-3 36/37 cleared at Qingdao Port was 16,700-16,900 yuan/ton, both higher than 4 There was a slight increase at the beginning of the month. A large international cotton merchant’s bidding basis today for US Green Card cotton 31-3-37 1-5/32 (strong 28GPT) and SM 1-1/8 are 17-17.5 cents/pound and 16 cents/pound respectively. The same as last week; while the bidding basis for customs clearance Brazilian cotton M 1-1/8 (strong 28GPT) is 15.5 cents/pound (both benchmarked against the ICE2305 contract), the quotation gap between US cotton and Brazilian cotton of the same quality and index is small.
An international cotton trader in Huangdao said that due to the recent increase in cotton holding costs for traders, cash flow pressure has emerged, coupled with concerns about the Federal Reserve’s interest rate hike in May, the decline in global textile and clothing consumer demand, and the Brazilian/Australian 2022/23 cotton season in the southern hemisphere. Concerns about a good harvest have led to a strong willingness to withdraw payment. Although the quotations for bonded cotton and customs-cleared cotton have been slightly increased, the number of short orders negotiated for actual orders has also expanded. It is not uncommon for transaction prices to “rise brightly, remain flat or even fall silently”. . As domestic demand in the textile and garment industry is about to enter the off-season, new export orders are still lacking sustainability. Cotton textile companies/middlemen continue to be cautious in making inquiries and purchasing foreign cotton, and replenish stocks as needed. Therefore, cotton stocks in China’s major ports continue to Showing a slight increasing trend.
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