Small And Medium Cotton Merchants Are Gradually Blocked Outside The "Threshold" Of The Industry.

According to Qingdao, Zhangjiagang, Guangzhou and other port cotton traders, recently, the main contract of ICE was in the horizontal line of 68-69 cents / pound. The two sides waited for the fresh report of the US cotton export report, and the quotations of CNF, CIF, such as US cotton, Australia cotton, West African cotton (mainly Benin, Cameroon, Zimbabwe and other places) and Australia's cotton and other CNF and CIF coming to Hong Kong were all stable.

On 19 and 20 July, Australia cotton SM 1-1/4, SM 1-7/32, SM 1-3/16 (fracture strength 33GPT, Ma G5) were quoted at 90.90-91 cents / pounds, 89.90-90 cents / pounds, 88.90-89 cents / pounds, of which there was a bargaining space for the larger contracts (single pick up three counters), and the quotations for the "Hong Kong and Macao cotton" were basically the same as those of the two.

An international cotton trader said that since mid June, the attention and purchase of Chinese buyers to Australia cotton were mainly medium length 1-5/32 and above, strong 30GPT and above, and the early interest in 1-1/8 and 1-3/32 declined significantly.

USDA report shows that 2016/17

The output of cotton is about 958 thousand tons, which can be exported to about 849 thousand tons (the actual export volume of 677 thousand tons in 2015/16). The Australian Cotton Corp calculates that the total output is expected to reach 1 million tons. However, with the acceleration of processing, signing and shipping of cotton mills, the output of the cotton mill and exporters is likely to be overestimated, or about 900 thousand tons.

On the one hand, the per unit yield of upland cotton planting is high.

The growth momentum of Australia's cotton area in 2016/17 was mainly from dry land in non irrigated areas, and the overall unit production declined significantly. On the other hand, the main cotton producing areas in March to the picking period had a long time of rainfall. Not only did they exert some influence on cotton strength and horse value, but also the output was also bad; in addition, the cotton mills in Southeast Asian countries such as India, Vietnam, Indonesia and other countries in Southeast Asia paid close attention to and contracted enthusiasm for 2016/17 in the year of 2016/17. At the end of April, the contract signing rate of Australia cotton reached 80%.

Judging from the survey, the ICE contract failed to break 69 cents / pound for four consecutive days.

Export reports or bad profits are more than profits; plus ICE's main force rebounded from 66.28 to 68.47, triggering spot quotation of US cotton, Australian cotton and West Africa cotton to rise by 2-3 cents / lb, so purchase invitation from Southeast Asia and China showed a downward trend (1% of tariff quotas in China's market were seriously inadequate, and the external causes of pfer and Rent-seeking "one ticket is hard to find"), and some textile mills began to try "ON-CALL" point price order.

The textile enterprises in Henan, Jiangsu, Shandong and other places said that since this month, the value-added tax rate of cotton imports has been reduced from 13% to 11%.

Industry purchases or buyers lowered quotations, but because of the fact that 1% of the quotas for tariff quotas were "more than enough", the direct result of expanding the price of cotton and releasing the policy dividend was the increase in quotas and rent-seeking prices.

The quotations from the United States, cotton and so on are higher than the 1000 yuan / ton of Xinjiang cotton in 2016/17, plus the quotas of "Shu Dao difficult", so the number of traders who import and export cotton is less and less, and the competition has also slowed down.

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