Market Dynamics: Ice Cotton Continued To Rise, Some Traders Closed The Offer

According to the feedback of some cotton textile enterprises, affected by the continuous trading limit of ice cotton futures on August 12 and 15 and the increasing demand for traceable orders, some cotton trading enterprises in the port have closed the offer for the time being, so they are in a strong mood to sell goods.

As Zheng cotton's rebound strength and range could not keep up with ice pace, and the hanging range of internal and external cotton continued to expand, so foreign cotton ship cargo and bonded cotton spot could hardly be traded (traders' foreign cotton basis was strong, and there was no room for negotiation);

However, there are some deliveries of RMB quoted customs clearance cotton (quoted price cf2301 + basis), mainly due to the rigid purchase of cotton textile enterprises after receiving traceability orders. However, due to the lack of medium and long-term orders and large orders, taking delivery of goods is still dominated by a small number of batches, and some are executed in one contract for multiple times (take one batch to pay for one batch).

According to the survey, up to now, the inventory of tradable cotton in China's main ports has continued to decline compared with that in July (bonded cotton + non bonded cotton), which is mainly due to the fact that the number of American cotton in 2021 / 22, which arrived in Hong Kong, delivered and put into storage in August, has passed the peak; In addition, the shipping date of Australian cotton in 2022 is generally postponed to October / December, and Brazil cotton has not been shipped in 2022. Therefore, the port cotton in July / August is in a state of "less in storage and more in stock".

In addition, the price of cotton imported from Xinjiang rose sharply to RMB 1-600 per day due to the large price difference between the cotton imported from Xinjiang and the United States (i.e., the price of cotton imported from Xinjiang to the United States by 1% per day) was significantly higher than that of the cotton imported from the mainland of China (RMB 1-600 per day);

In addition, due to the depreciation of RMB and other factors, the cotton mills with 1% tariff and smooth tariff cotton import quota have very low enthusiasm in purchasing foreign cotton ships and customs clearance of bonded cotton.