Since June 10, ICE cotton futures have begun a crash-like decline, with the main December contract plummeting by more than 20 cents. Not only the ON-CALL point price contract that was trapped in the early stage took the opportunity to trade in large quantities, but also included China, Vietnam, and India. Buyers have gradually entered the market in the 115-120 cents/pound range, and accelerated the pace of signing contracts at 100-110 cents/pound. As the contract fell below 100 cents/pound and 95 cents/pound, global buyers purchased The enthusiasm for U.S. cotton in 2022/23 has been further unleashed, and some cotton textile companies and middlemen are heating up their plans and operations for bargain hunting.
An international cotton merchant said that in the past week or so, not only have the number of textile companies and traders inquiring about shipping dates for December/January/February 2022 US cotton, Brazilian cotton and other origins increased significantly compared with May/June, but the port bonded Cotton customs clearance volume also showed signs of bottoming out. On the one hand, as ICE plummeted, the difference between the direct cost of imports under the 1% tariff on bonded cotton and the quoted price of customs clearance cotton at the port quickly narrowed to 200-300 yuan/ton; on the other hand, due to the internal and external market of cotton from April to June, the external market has been strong and the internal market has been strong. Weak, the cost of bonded cotton after customs clearance is seriously inverted with the price of customs clearance cotton and Xinjiang cotton in inland warehouses. Therefore, non-bonded cotton at the port has become the focus of procurement and delivery for export-oriented enterprises. The supply resources of US cotton, Brazilian cotton, etc. are even tight, so there is a need to expand customs clearance. quantity needs.
Entering late June, some cotton traders are more willing to ship. The price difference between foreign cotton from the same origin and the same quality index at the port is also relatively large, and the market is relatively chaotic. First, ICE continues to be in a state of violent fluctuations in 2021/22, as well as the epidemic, the United States Due to port congestion and other factors, traders place orders at different times, and the cost of cotton in storage also varies greatly; secondly, the global cotton planting area will increase significantly in 2022/23, and the output may be worth looking forward to.
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