According to the USDA report, as of January 12, 2022/23, the cumulative sorting of American cotton was 3.01 million tons, a year-on-year decrease of 9.4%; 82.7% of them met the requirements of cotton trading, down 0.1 percentage points from the previous week, down 1.4 percentage points year on year. During the week from January 6 to 12, 104500 tons of new flowers were classified and inspected in the United States this year, 79.2% of which met the requirements of ICE cotton transaction, an increase of 1.4 percentage points over the previous week.
As the sorting work of American cotton is about to end (USDA's latest global production, demand and stock forecast for this year's output of American cotton is 3.196 million tons, and the sorting volume has accounted for 94.18% of the output as of January 12), although the grade and quality indicators of late flowers have rebounded slightly, the impact on American cotton in 2022/23 is not great.
According to the survey of some domestic cotton textile enterprises and traders, the concern about the quality, color grade and other indicators of American cotton in 2022/23 is still outstanding (according to statistics, as of January 12, the total number of American cotton contracted by Chinese buyers in this year was only 59000 bales, a sharp decline year-on-year); Although the implementation of some contracts was postponed for 1-2 months after negotiation between the buyer and the seller, it remains to be seen whether the quality of American cotton in 2022/23 is "unsatisfactory" in the middle and later stages according to the inspection report issued by USDA.
From the analysis of quotation resources of several international cotton merchants and import enterprises, it can be seen that the key indicators and spinnability of American cotton for the shipping date of December/February/March 2022/23 have indeed declined, as shown in the following aspects:
First, the proportion of SLM grade and below cotton increased compared with the previous two years (EMOT grade performance deviation of American cotton), while the proportion of 31-3/31-4, 21-2/21-3 and others was low;
Second, the percentage of cotton resources with M1-1/8 and below indicators increased significantly compared with the previous two years, such as M1-1/16, M1-3/32, 34/35, etc; Up to now, the quotation of American cotton with medium length of 37/38 is relatively scarce (new cotton in 2022/23); Third, the proportion of specific breaking strength 27/28GPT is relatively high, and there are not many sources of high spinnability and high count yarns suitable for spinning 29/30GPT.
The cotton enterprises in Shandong, Jiangsu and other places said that, based on the analysis of the 2022/23 US cotton resource report provided by the current cotton merchants, there were not many batches that reached the M/SM level, 1-5/32 and above, strength 29GPT and above indicators at the same time. For example, US cotton EMOT, although the length, strength and other indicators were OK, but the grade deviation; The M/E color grade and strength performance of American cotton are slightly better, but the proportion of fiber length 34/35 is high, which restricts the purchase enthusiasm of Chinese enterprises. A trader in Qingdao reported that in addition to a small number of American cotton arriving at the port before the end of January with good quality indicators, there are also some resources with strong spinnability in April/May/June shipping dates, but the quotation is also very strong.