According to the USDA U.S. Cotton Export Weekly Report, in the two weeks from August 13 to August 26, 2021, Chinese buyers only signed contracts to purchase approximately 1,900 tons of U.S. upland cotton in 2021/22, while the week from August 6 to 12 , China has signed a net contract of 36,700 tons of US upland cotton in 2021/22 (accounting for 66.73% of the total US cotton export volume signed in 2021/22 that week). In addition, since August, Chinese buyers have not signed contracts for 2022/23 US cotton, but buyers from Turkey, Pakistan, Vietnam and South America have been relatively active in inquiries and purchases. In the past two weeks, Chinese cotton spinning mills and traders have signed contracts for the 2021/22 U.S. cotton season, which has attracted great attention from U.S. cotton export companies, international cotton merchants, and domestic cotton-related companies. All parties have speculated on the reasons why Chinese buyers are interested in the 2021/22 season. In 2022, U.S. cotton purchases “suddenly stopped” and interest in placing orders weakened significantly.
From the author’s investigation of some cotton textile enterprises and importers, the following points can be roughly summarized:
On the one hand ICE cotton futures have fluctuated widely since mid-August. The main contract rose from 91 cents/pound to 96.71 cents/pound and then fell rapidly. After falling to 91.80 cents/pound, it rebounded to 94.98 cents/pound, which is not conducive to buying. home orders; in addition, the shipping schedules of US cotton in 2021/22 are concentrated after December, and the additional 700,000 tons of tax-free cotton import quotas in 2021 are valid until December 31, and textile companies are worried that it will be too late; on the other hand, the external market is also Without cooperation, in addition to the sharp rise in sea freight, some U.S. ports have suffered from severe backlogs of cargo due to factors such as the epidemic, hurricane landings, and American people buying and selling around the world (Los Angeles and Long Beach ports have piled up), and there has been an abnormal shortage of containers. U.S. agricultural exports have suffered Bottleneck, Chinese buyers judge that the shipment and contract execution of US cotton in 2021/22 may be in great trouble, so they have suspended signing contracts for US cotton. </p
