The February market report released by Brazil’s CONAB shows that Brazil’s cotton planting area in 2021/22 will be 1.54 million hectares, a year-on-year increase of 12%; Brazil’s cotton output is expected to be 2.71 million tons, a year-on-year increase of 15%. Moreover, due to the moderate temperatures and more frequent rainfall this season, Brazilian cotton companies and international cotton merchants have strong expectations for a further improvement in the Brazilian cotton quality indicators this year.
Some cotton-related companies judge that because Brazilian cotton stocks are at low levels, the costs of fertilizers, pesticides, and labor have increased significantly, and indicators such as Brazilian cotton quality and spinnability are generally recognized by yarn mills in India, Vietnam, Pakistan and other countries, export demand Supported by strong growth and other favorable conditions, it is expected that Brazilian cotton prices will continue to run at a high level in 2021/22, and the cost-effective competition with US cotton in 2021/22 and 2022/23 is expected to intensify.
Cotton traders in Qingdao, Zhangjiagang and other places have reported that since January 2022, the backlog of goods at major agricultural export ports such as Brazil’s Santos Port and Salvador Port has significantly slowed down, and the shipment of cotton, soybeans, corn, etc. has gradually become smoother. Currently, China’s main ports are bonded, Customs clearance Brazilian cotton pending order resources have increased significantly compared with November/December; in addition, Brazilian cotton quotations for March/4/6 and October/11/December shipping dates are also sufficient.
It is understood that the fixed prices of Brazilian cotton M 1-1/8 and M 1-5/32 cleared at Qingdao Port from February 17 to 18 were concentrated at 23400-23500 yuan/ton and 23600-23700 yuan/ton (net weight), while the US Cotton 31-3/31-4 36/37 (strong 28GPT) is quoted at 23,800-24,000 yuan/ton. The price difference between the two gradually widens to 300-400 yuan/ton. The competitiveness of Brazilian cotton has slightly increased; while Henan and Shandong The quotation price of “double 28” (or single 29) Xinjiang machine-picked cotton in inland warehouses is 23,400-23,550 yuan/ton, which is slightly higher than the 200-300 yuan/ton of Brazilian cotton of the same quality and grade.
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