International Cotton Spot Demand Stable Cotton Prices Overall Strength

Recently, the spot price of international cotton futures has generally been strong, but the textile mills did not catch up with them. They were still cautious in replenishment. The turnover of non US cotton was still active, mainly due to the poor quality of American cotton in the latter part of the year.

In the early days, when ICE futures were close to 73 cents, Brazil cotton and India cotton had a large number of pactions, providing strong support for the market.

At present, China continues to look for non cotton varieties such as India cotton and Brazil cotton. Brazil cotton continues to sell well in China. In 2019, Brazil M 1-5/32 grade cotton was 1150 cheaper than Australia cotton in 2019, while the US cotton quotation was lower than this level.

Judging from the current situation, Brazil cotton is very popular in China, which is closely related to the improvement of quality grade and length of Brazil cotton.

The price of high-grade cotton is expected to wait for the new flower market in southern Texas. Now that the new cotton has not been sown in the area, it should be at least until the end of August.

In the near future, due to rainfall, the sowing of the south central and southeast parts of the United States is postponed, and the new flower quotations will not be provided as scheduled in previous years.

At present, there are very few quotations from M grade and above grade.

Recently, India began to inquire about high-grade West African cotton, which is cheap and very popular with India enterprises.

With the tight supply of M 1-1/8 and above levels worldwide, the West African cotton base is also rising. This is also one reason why India began to purchase West African cotton.

With the overall strengthening of the international cotton prices, the current price has strong support. No matter the price or the loose basis, it will lead to more purchases.

At the same time, textile mills still have no intention to catch up with prices.

In the short term, the market is developing upward, but the market will continue to grow.

Sino US trade negotiations are still a key factor in the price trend. If we talk about it, ICE futures are expected to attack 80-82 cents, whereas the December contract will fall to a new low.