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Ice Futures Rose, And Now Purchasing Is Becoming More And More Difficult

2020/7/9 10:49:00 2

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In recent week, the international spot market has not improved, with few purchases in other regions except China and Vietnam. Moreover, American cotton exports to China only transfer American cotton stocks to China's warehouses, rather than really digesting them.

In that week, there was a huge gap between the price quoted by Australian cotton and the psychological price of buyers. Some cotton merchants continued to look for buyers who could make a high price bid (basis difference above 2000 points), while others tried to reduce the price. The actual transaction was still very difficult. In the current market environment, other varieties are difficult to sell, and Australian cotton is more expensive.

With the rise of futures prices, the quotation basis of some places of origin began to weaken recently. Cotton merchants are also trying to digest the inventory. The Indian cotton price (21-3-37) is very competitive, although. The pollution of cotton picking is serious, but blended yarn can be produced. Recently, low count yarn has a good market, and the rise of cotton price may make the price of stored yarn rise.

In May, Brazil's cotton exports decreased by 15.5% year-on-year. After an increase of 165% in January, the growth of Brazil's cotton exports began to slow down, until the recent year-on-year decline. With the increase of China's demand for American cotton, Brazilian cotton exports began to be hindered. However, Turkey and Vietnam are still active in purchasing Brazilian cotton, and the price is cheaper than American cotton. Cotton exports from Brazil are expected to decrease in the next year.

Cotton transactions in other places of origin are extremely light, inquiry factories are looking for the cheapest cotton, and with the rise of ice futures, it is increasingly difficult to purchase. Vietnam and Pakistan imported Brazilian cotton, while Indian cotton was only exported to Bangladesh at a low price. The basis of West Africa cotton is still very high. After the rise of ice futures, its basis is expected to weaken. The price of cotton from Cote d'Ivoire and Togo is very small, but there is a big difference between the price of cotton from Cote d'Ivoire and that from Togo.

With the increase of yarn inventory and the decline of yarn price, the rise of ice futures makes it more difficult for textile mills to purchase. The gap between cotton merchants' quotation and factory's inquiry is becoming larger and larger, and few people are willing to purchase. From now on to the next year, the global end of the year inventory is on the rise. India still has 2 million tons of CCI inventory and a bumper harvest of new cotton. Brazil's output is also very large.