Textile Mills Outside China Welcome Opportunities For Cotton Varieties To Be Active

According to the understanding of Australian authorities, although the new crown virus has caused the market to worry about the macro-economy, so far, the procurement and transaction situation outside China is still good. The export of US cotton has maintained strong growth for several weeks, and the wide distribution of export areas can illustrate this point.

At this stage, international spot trading is still dominated by low grade cotton and Brazil cotton. One of the reasons may be the shortage of raw materials in textile mills. Therefore, the short-term replenishment activities are more active. In addition, some of China's capacity due to the suspension of the epidemic has also been given to the production and sale of these countries.

At present, US cotton sells well in Turkey, Pakistan and Vietnam. These countries have a small import demand for West Africa cotton. The demand for India cotton in Bangladesh is around 700. Vietnam buys cotton on the way and Pakistan looks for high-grade cotton in West Africa because of the difficulty of buying high-grade cotton.

The quotation of 1-1/8 length in West Africa cotton has been reduced, which indicates that the supply in late stage is tight. There are about 400 thousand tons of cotton in Brazil for sale in the producing area. India CCI has acquired about 7 million 500 thousand packages and may eventually acquire 10 million packages, but sooner or later it will flow into the spot market because they also need to make profits.