China'S Cotton Market Is Active, Southeast Asian Procurement Stagnation

Recently, the international market paid close attention to China's signing of the US cotton list. Last week China accounted for 92% of the US cotton contract volume. At the same time, cotton traders also reflect that China has purchased many new cotton and Chen cotton from Australia's SM 1-5/32. Chen cotton's transaction base is expected to be within 2000 points, and the new cotton base difference is expected to be close to 1850 points. However, these transactions are basically the behavior of traders, rather than the procurement of textile mills.

There is hardly any movement outside China, and cotton and cotton yarn stocks continue to rise, while downstream demand is almost exhausted. In the past, Diwali (May 23rd) was coming to be the busiest season. The textile market was very active, but this year a large number of textile mills reduced production or even stopped, and it is not expected to resume work until the beginning of June.

At present, the psychological price of Ao cotton outside China is lower than that of China. Indonesian factories are not interested in the new Australian cotton flower which is higher than 1500 points. The price basis of Brazil cotton in the three quarter and the four quarter is also down. The depreciation of Real also makes Brazil's domestic spot dollar quotations increase. The base of the US GC 31-3-36 and above level is strengthened by the support of China's demand. The base price of the SM offer is also strong, partly due to the increase in demand in China and the possible decline in quality of cotton in Australia.