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    Some Cotton Sales Contracts Or Encounter Resistance

    2020/2/13 21:10:00 0

    PartCottonSalesContractsResistance

    Recently, some foreign and cotton importing enterprises have expressed concern about the smooth implementation of the 1/2/3 month contract in 2020. Some buyers have told the sellers to postpone delivery for 15-30 days.

    Industry analysis, first, since late January, cotton prices continued to narrow, and cotton competitiveness declined significantly. 28 "Xinjiang machine picked cotton weight 13000-13200 yuan / ton price is basically flat; and port traders Brazil cotton and India cotton quotation is higher than Xinjiang cotton 300-400 yuan / ton; two is affected by the continuous spread of new crown pneumonia, most cotton textile enterprises in Jiangsu, Zhejiang, Henan, Shandong and other provinces are postponed to mid and late 2 months, cotton and other raw materials procurement has been postponed correspondingly; coupled with transportation vehicles, road constraints and many other factors, buyers advocate the suspension of contract execution; three is the rapid cooling down of the downstream consumer market since the middle of the second half of the month, and the pressure of money collection and payment increased. At present, Port Bonded M 1-1/8 Brazil cotton, SM 1-5/32 West Africa cotton 1% tariff, net weight, customs clearance costs 13200-13400 yuan / ton, and the mainland treasury" double "

    According to the latest monthly report of USDA, the global cotton ending inventory is adjusted to increase by 2 million 500 thousand packs (output increase and consumption reduction). Traders and textile enterprises generally believe that, on the one hand, China's new pneumonia will not only affect domestic cotton consumption demand, but also lead to a significant "diving" of India, Pakistan, Vietnam and other cotton yarn imports, thus causing impact on the production and marketing of cotton mills in Southeast Asia and Central Asia. On the other hand, some WTO members are likely to make "articles" through the new crown epidemic situation in China, overreact and impose unnecessary trade restrictions.

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