Cotton Price Difference Between India And The United States Expands Again

According to traders' quotations, at present, Qingdao, Zhangjiagang and other places have quoted 13150-13200 yuan / ton for us cotton 31-3-36, 12800-12900 yuan / ton for Brazilian cotton M36, 11800-12000 yuan / ton for Indian cotton m1-5 / 32, with the same grade and quality of American cotton higher than that of Indian cotton by 1200 yuan / ton, and the price difference between Brazilian cotton and Indian cotton has also expanded from 400-500 yuan / ton to 800-1000 yuan / ton.

Industry analysis shows that, on the one hand, CCI is under the continuous pressure of high inventory, high cost, low consumption and the expected substantial growth of India's cotton planting area and output in 2020 / 21, so CCI has to reduce prices again and again, and the prices of FOB, CNF, bonded and customs clearance Indian cotton prices have continued to fall; on the other hand, the depreciation of Indian Rupee stimulates the decline of cotton export prices. In fact, the risk of issuing money to other countries is to pass on unlimited opportunities to other countries. Recently, the Central Bank of India said that the Indian rupee has no fixed target against the US dollar and does not comment on the strength or weakness of the rupee.

According to the survey, as of the first ten days of August, the number of Indian cotton, Brazilian cotton and American cotton in China's main ports for customs clearance in 2019 / 20 is relatively large. An international cotton merchant judged that as of the end of July, the bonded + non bonded cotton inventory of China's main ports had approached or exceeded 600000 tons (the arrival, delivery and warehousing of American and Australian cotton continued to increase in the past half a month), of which the quantity of cotton for customs clearance accounted for about 30-40% (i.e., 180000-240000 tons), and American cotton, Brazilian cotton and Indian cotton accounted for the top three.

A cotton enterprise in Zhangjiagang said that the following three characteristics of foreign cotton have emerged recently: first, the Australian cotton base differential has not only stopped decreasing, but has rebounded slightly, which is mainly driven by the continuous drought in the main cotton producing areas of the United States, the sharp decline in the proportion of good seedlings, and the increase in shipping freight; second, the cash flow and export of some small and medium-sized Cotton Traders and middlemen can be described as "cotton full" in 2019 / 20 The pressure of goods is great, and the willingness to reduce prices and realize cash has increased, especially for Indian cotton. Thirdly, the outbreak of the epidemic in Xinjiang has greatly affected the transportation of roads and railways. In addition, the import quota of cotton within 1% tariff is hard to obtain. Therefore, the attention of mainland textile enterprises to high-quality Brazilian cotton, American cotton and Australian cotton in ports has risen.