Foreign Cotton Encountered A "Price Free" Dilemma &Nbsp; Textile Mills Complained A Lot.

Since mid May, a number of foreign offices and agents in China have been selling out of cotton. Many international cotton traders still insist on quotations, but in fact they are in a state of "no price".

Although a large international cotton trader has insisted on making quotations abroad, Australia cotton, Central Asia cotton and West African cotton and Brazil cotton are basically out of stock.

After entering June, some international cotton traders and foreign cotton agents began to rest and rest, focusing on the global cotton planting, growth and weather in 2010/11.

In June 7th, the price of E/MOTSM and E/MOTM in the domestic bonded area were respectively 92.50-93.0 cents / lb and 90.50-91.0 cents / lb. There are still several big cotton merchants in the "control" shipment, the high level cotton is very tight, and SM1-1/8 quotes are still 96 cents / pound.

Although some cotton merchants in India cotton business still have quotations, they are mostly shipped in 8 and September.

According to the survey, at present, the import quota of 800 thousand tons of quasi tariff cotton has been basically distributed to the hands of enterprises.

With the decline of global commodities and stock market, the price of cotton outside the port has been reduced, and the purchasing enthusiasm of textile factories has been resumed.

However, as the number of high and medium grade cotton in port and forward shipment is small, it is expected that the state will choose to reserve 30-60 tons of cotton reserves, plus the government's actions to combat agricultural products and commodities. Therefore, the cotton merchants' hoarding willingness will be weakened.

In June 7th, a cotton mill in Hubei purchased 300 tons of SM grade cotton from a Chinese prefix company at a price of 17500 yuan / ton, but it did not "catch a cold" to the United States cotton because of its high short staple rate, batches, poor consistency and weight loss, which affected the procurement of textile mills.

In contrast, the internal quality and fiber strength index of West African cotton and Brazil cotton were gradually recognized by cotton mills.

As for the possibility that the country will increase the import quota of 80-100 tons of cotton, some foreign businessmen think that it basically has no effect, because at present, except for a small amount of US cotton and Australian cotton, there are too few cotton to choose from and can only receive warehouse receipts from the ICE futures market.

According to the insiders, as at the end of May, the total amount of consignment cotton in the bonded area is still 25-27 tons, but the actual circulation can not be less than 30%, and the right of goods belongs to the cotton trader is less than 50%.