According to feedback from cotton traders in Qingdao, Zhangjiagang and other places, with the ICE cotton futures contracts peaking and falling since October 8, the bullish chasing sentiment in international cotton futures has significantly converged, and short sellers have finally gained a breather. Chance.
Faced with the high plunge of ICE futures, most international cotton merchants and cotton importing companies have responded by continuing to slightly increase the basis of far-month shipments and bonded cotton (including 2021/22 Annual US cotton, Indian cotton, African cotton and 2020/21 Brazilian cotton, Australian cotton, etc.), firstly, there are currently a large number of ON-CALL contracts that require purchasers to price in a timely manner, and it is more difficult to negotiate and postpone later, and the buyer suffers “Stuck neck” operation; second, the easing of Sino-US relations, bad weather in some parts of the United States, and the strong rebound of global energy and agricultural products make ICE not qualified for a deep correction, and an oscillatory rebound is still a high probability.
Judging from the quotations of international cotton merchants and trading companies, in the past two days, the bonded 2020/21 Indian cotton M 1-5/32 and Brazilian cotton M 1- The basis difference of 1/8 has been increased to 5-6 cents/pound and 12.25-13 cents/pound; while the December/January/February shipping date is 2021/22 US cotton EMOT 31-3/31-4 36/ The basis difference of 37 has increased to 13.5-15.5 cents/pound (due to different specific indicators and shipping dates, traders’ quotations vary greatly). Overall, whether the bonded or far-month cargo basis is increased by more than 0.5 cents/pound, there is slightly more room for Indian cotton basis to increase in 2020/21 and 2021/22.
A cotton importer in Shandong said that since late September, ICE and Zheng cotton have continued to rise sharply. Not only are a large number of US dollar price point contracts unable to be executed, but also the port basis quotation, a mouthful The price of customs clearance cotton inquiries and transactions also slowed down significantly, and the total cotton inventory at the port showed a rebound trend. </p
