China'S Imports Are Active, And Cotton In Other Regions Is In A Downturn.

Recently, the international spot market has been very hot and uneven. The procurement of Chinese textile enterprises and traders is quite active, and the procurement in other parts of the world is very dull. Cotton mills in other Asian countries are slowly returning to work, but due to the slow recovery of the downstream consumer market and the shortage of workers, the current start-up rate is only 30-40%.

At this stage, India factory can buy large quantities of low-priced cotton from CCI after reworking, and the cotton ginning factory has been exporting different grades of cotton at a very cheap price. Vietnam has some purchases. At the same time, Pakistan has been looking for cheap cotton and other low-grade varieties. The scale of the transaction is very small, and it is also interested in the cotton that is initially shipped in 2021. The reason is that this year's sowing area has been greatly reduced, and the new cotton output is expected to drop to 700-800 bales.

Brazil cotton quotation is still very abundant, but because the open market is too small, it is very difficult to have a large number of transactions. US cotton is still the best deal, mainly in China. The market estimates that China has accumulated about 200 thousand tons of US cotton and started shipment since June. If the Sino US trade war is escalating again, China may cancel the contract.

More and more countries are beginning to realize that the economy needs to restart. The United States now has 33 million people applying for unemployment, close to 10% of the population. European governments have also invested heavily in ensuring people's lives, but developing countries do not have this kind of treatment. However, with the slow opening of stores, the demand for cotton will gradually recover, but at least until the end of June.