Since late September, ICE cotton futures have started to surge continuously. After the “five consecutive positive days”, the main contract is approaching 100 cents/pound. In less than a week, ICE has increased by 12.27%. Not only some cotton companies, traders and speculators have Guarantees are “locked”, and a certain amount of on-call price orders are forced to be postponed or even cancelled.
A medium-sized cotton company in Huangdao said that ICE has broken through resistance levels of 95 cents/pound and 98 cents/pound in the past two days, and 100 cents/pound is close. Nearby, the bullish sentiment in the cotton futures market is getting higher and higher. Traders are bonded, customs-cleared cotton is reluctant to sell, and domestic cotton textile enterprises and middlemen are indifferent to inquiries/purchasing. “Those who are selling are unwilling to sell. “Buying but not intending to buy” has become the main feature of the foreign cotton market in the past two days.
On September 27-28, bonded M 1-5/32 Indian cotton quotations in Qingdao, Zhangjiagang and other major Chinese ports were concentrated at 100-102 cents/pound (specific indicators, warehousing There are differences due to different warehouses); M 1-1/8 Brazilian cotton is quoted at 108.20-109.20 cents/pound (basis 10-11 cents/pound); while 31-3/31-4 36/37 US cotton is quoted It is as high as 111.70-112.70 cents/pound. The price difference between Indian cotton and US cotton has shrunk to about 10 cents/pound, and the competitiveness has declined compared with July/August.
According to analysis by cotton spinning mills in Zibo, Dezhou and other places in Shandong, the current quotation of Brazilian cotton M 1-1/8 for port customs clearance has risen sharply to 19,750-20,000 yuan/ton (including the fixed price) , traders), which is slightly higher than the price of “Double 28” Xinjiang machine-picked cotton in Henan, Shandong and other inland warehouses at 300-400 yuan/ton (priced by weight: 19,200-19,400 yuan/ton), so the competitiveness of bonded cotton and customs-cleared cotton are both Waiting for improvement.
Some cotton companies and traders believe that ICE and Zheng Cotton have experienced a blowout increase, and some provinces have launched the “double limit + dual control” model to receive orders from textile and clothing terminals. / Order arrangement and delivery have a greater impact. Cotton spinning mills and weaving companies have encountered extreme market conditions of “up and down”. Therefore, relevant departments are called on to issue an additional 300,000-500,000 tons of general trade sliding tax cotton import quotas in 2021, so that Textile companies can effectively reduce raw material costs and overcome the current difficulties. </p
