Import Cotton Reduced, Indian Cotton High Stabilized

According to the feedback from cotton trading enterprises in Zhangjiagang, Qingdao, Ningbo and other places, the RMB quotation basis of Indian cotton shipping, bonded and customs clearance has been stable since the end of January. Although in recent days, with the gradual increase of domestic textile enterprises' holidays, the inquiry and purchase of raw materials have decreased significantly, but the willingness of international cotton merchants and import enterprises to reduce the basis difference actively is still not strong.

Although cotton related enterprises and investors judge that the US $1.9 trillion stimulus plan is likely to shrink, there is a high probability that the Democratic Party will forcefully promote super QE in the first quarter and the second quarter of 2021, and there is still room for US stocks and commodity futures to rise. In addition, the price rise of cotton and cotton yarn in India can be transmitted smoothly, plus the bottom of MSP purchase price and the planting area of cotton in 2021 may be changed to soybean and corn Therefore, McX futures, Indian cotton spot prices "easy to rise difficult to fall.".

According to the survey, in recent days, the basis difference of Indian cotton for m1-5 / 32 (strong 29gpt) in main ports of China in February / March is generally 3-3.8 cents / pound, and the buy it now price is stable at 83.5-84.5 cents / pound (Qiangli 28-29gpt), which is 3.5-5.2 cents / pound compared with the US cotton price in the same shipping period. The price competitiveness of Indian cotton shipping and bonded goods is narrowed than that in December / January. On February 3-4, Qingdao port sm1-5 / 32 Indian cotton customs clearance "buy it now price" 15400-15600 yuan / ton (due to the difference in miscellaneous and other indicators, Zhangjiagang quotation is generally slightly higher than 50-100 yuan / ton), port m1-1 / 8 Brazilian cotton spot price of 15800-15900 yuan / ton, higher than 300-500 yuan / ton of Indian cotton.

Several textile enterprises in Jiangsu, Shandong and other places said that although Indian cotton still has some advantages in terms of US dollar or RMB quotation, the quality and spinnability of Indian cotton in 2020 / 21 are still prominent, which requires Chinese buyers to place orders carefully.