According to CFTC statistics, as of October 15, there were 147,211 ICE cotton futures 2021/22 ON-Call contracts, a significant increase of 7,485 contracts from October 8. However, it is worth noting that from October 8 to 15, ICE When cotton futures fluctuated and pulled back, a large number of ON-CALL contracts were not traded at low prices, but continued to be postponed and postponed. This shows that on the one hand, even if the main force of ICE breaks through 105 cents/pound, the buyer’s ON-CALL contract still suffers a relatively large loss. On the other hand, purchasing companies still judge that with the large amount of northern hemisphere cotton coming on the market, the countdown to the Federal Reserve’s exit from QE, and the concern about the resurgence of the new crown epidemic in winter, ICE’s main midline may fall below 100 cents/pound, and some contract negotiations will be postponed. price and wait for the opportunity.
Some cotton trading companies said that in the past half month, the ICE long position rate has dropped from +32.18% to +27.62%, with passive price points in the range of 105-110 cents/pound. The situation is not uncommon. Some exporters and cotton trading companies do not accept the postponement of the buyer’s ON-CALL contract. The sharp drop in the ICE market last Thursday gave a few buyers the opportunity to negotiate prices and fulfill the contract.
Cotton traders in Qingdao, Zhangjiagang and other places reported that bonded cotton stocks at ports have continued to decline slightly in recent days, especially the spot supply of medium and high-quality 2020/21 US cotton and Brazilian cotton has tightened (International cotton merchants, import and export companies quoted quotations, and their business focus shifted to foreign cotton with shipping schedules in December/January/March), while the inquiry and transaction of bonded Indian cotton were still very inferior (including CCI bidding resources); the inventory of non-bonded cotton was There is a relatively obvious increase: on the one hand, since October 18, Zheng cotton futures have plunged, and some cotton spinning enterprises and middlemen have increased their efforts to purchase domestic cotton (including Zheng cotton warehouse receipts) at price points, and imported cotton has been left out; on the other hand, from the quotation Look, the basis of high-quality imported cotton resources invested by China National Cotton Group/China Textile Group and other enterprises is relatively high. Compared with other cotton traders, the quotation advantage is not obvious. Therefore, the “textile special” has been “busy” after the first two weeks of transactions. After that, the temperature gradually cooled down, and the cotton at the port showed a trend of “more customs clearance and slower shipments”. </p
