According to feedback from some cotton textile companies and cotton traders, the Zheng cotton CF2201 contract continued to consolidate in the range of 21,000-21,500 yuan/ton this week, while the “four consecutive positives” of ICE cotton futures and the average daily supply of central reserve cotton remained Affected by the high level of 30,000 tons and other factors, the inquiry and transaction activity of imported cotton resources in the bonded area of Chinatex Group and China Cotton Group has cooled down compared with mid-October. In comparison, the shipments of high-quality and high-index US cotton and Brazilian cotton Better than cotton from other origins such as Indian cotton and West African cotton.
A cotton enterprise in Zhangjiagang said that there are two factors leading to the weakening of imported cotton transactions: On the one hand, small and medium-sized cotton traders believe that the bonded cotton basis difference given by several large enterprises is too low. , the wait-and-see mood has heated up, and the liquidity and concentration of port supply have weakened; on the other hand, under the premise that the purchase cost of Xinjiang cotton in 2021/22 is high and the domestic cotton futures are “upside down” by more than 2,000 yuan/ton, the basis of large companies is very strong , very strong, cotton companies are becoming more cautious in purchasing. Furthermore, since October, the stocks of bonded cotton and customs-cleared cotton at ports have declined significantly. The supply and demand situation has gradually reversed. The mentality of traders has also undergone great changes. The view that cotton prices are “easy to rise but difficult to fall” has gradually become a consensus.
From the survey, as of now in 2020/21, the main destinations for U.S. cotton, Brazilian cotton, and Australian cotton stocks and cargo are Qingdao Port, while Zhangjiagang, Shanghai, Nanjing, Ports such as Nantong mostly use American cotton and Indian cotton. A trader in Jiangsu reported that since late October, the quantity of Indian cotton bonded + customs cleared in China’s main ports in 2020/21 has been relatively sufficient, and the shipments in 2020/21 in October/December are relatively small; while the shipping date in January/March is 2021/22 Most of the annual Indian cotton is “off the shelves”. As for the reasons for the overall rapid decline in port cotton stocks in October, the company believes that firstly, most ports in the United States, Brazil and other countries have delayed shipments of cotton in July/August/September; secondly, Chinatex Group/China Cotton Group purchases port bonded cotton. The “Textile Special” sales of high-grade and high-index foreign cotton resources. </p
