According to feedback from cotton trading companies in Qingdao, Zhangjiagang, Guangzhou and other places, since January, bonded U.S. cotton inventories in major ports in China for 2019/20 and 2020/21 have continued to decline. There are only a few quotations from traders. International cotton merchants, large and medium-sized The sales focus of cotton import companies are US cotton cargoes with a loading period from January to March. However, a certain amount of customs-cleared US cotton is slow in transactions and shipments due to the high basis difference and 2020/21 old cotton.
From January 17th to 18th, the net weight quotation of Qingdao Port customs clearance US cotton 31-3/31-4 37/38 (strong 28/29GPT) was raised to 24,000-24,300 yuan/ton, which is higher than that of Henan, Shandong, Jiangsu and other inland warehouses in 2021 /The quotation price of Xinjiang cotton for the “Double 29” in 2022 is 200-500 yuan/ton (taking into account the net weight and weight difference).
It is worth noting that the arrival and storage volume of Brazilian cotton in China’s main ports in 2020/21 has continued to increase recently, and the proportion of cotton stocks in each port has also continued to increase. On the one hand, the current quotation of M 1-5/32 (36/37) net weight in Zhangjiagang, Qingdao and other places is 23,600-23,800 yuan/ton. Not only is it not higher than US cotton of the same quality and grade, but it is about 500 yuan/ton lower. Brazilian cotton competes On the other hand, as the pressure on the shipment of agricultural products from ports such as Santos in Brazil gradually eased in November/December, some contracts that had been delayed in loading and execution were restarted.
Some traders said that although the inventory of Indian cotton in major ports in 2019/20 and 2020/21 is relatively large so far, in contrast to US cotton, which has “more customs clearance and less bonding”, Indian cotton has “less customs clearance and more bonding”. According to the trend, domestic cotton spinning mills and middlemen continue to slow down or even cold-treat inquiries and delivery of goods from India.
First, driven by the recent surge in India’s domestic cotton spot and MCX futures and the ICE cotton futures main contract reaching an eleven-year high, the quotations for cargo and bonded Indian cotton are somewhat high, and the willingness of textile companies and traders to clear customs has declined significantly; Second, Indian cotton cargo resources continue to increase in 2021/22, and Chen cotton is not only “downgraded” relatively prominent, but also generally exhibits large impurities, foreign fibers, mixed batches, and poor spinnability in the middle and late stages; third The 2021 sliding quasi-tariff cotton import quota is valid until the end of December, and the cotton import quota within the 1% tariff in 2022 has not yet been issued to enterprises; in addition, most enterprises plan to sign contracts for the 1% quota to purchase high-quality and high-index US cotton and Brazilian cotton. , Australian cotton, etc., “Good steel is used on the blade.” On January 18, the net weight quotation of Zhangjiagang customs clearance M 1-5/32 Indian cotton was 21,900-22,300 yuan/ton (CCI resources), which was nearly 2,000 yuan/ton lower than the same indicator of US cotton.
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