Cotton Quotes Rose Sharply, India Cotton Competitiveness Is Weak

According to the survey, by this week ICE cotton main contract broke 60 cents / pounds pull, regardless of 6/9 shipping date or the bonded American cotton, Brazil cotton, West Africa cotton and other spot quotation should echo substantially, including China, Vietnam, Indonesia and other countries buyers in a wait-and-see state, especially the high quality high rise water cotton transaction slowed down continuously. A cotton trader in Qingdao has reflected that since the end of May, international cotton traders and importers have increased their quotations in 2019/20 bonded and customs clearance India cotton, but Gubang S-6 has less supply, and J34 or other producing areas and varieties account for more than 85%.

In June 3rd, Qingdao, Zhangjiagang and other places 6/7 month shipping date ME 41-5/41-4/51-4/51-6 36/37 (strong 29/30GPT) quote 66.50-67.50 cents / pound; 6/7/8 month shipping date M1-1/8 cotton price quotes 67-67.80 cents / pound, Brazil cotton price quotes tightened into the "convergence"; 2019/20 M 1-5/32 India cotton quotas also reached 66.20-66.70 cents / pounds, so the price difference between India cotton and Brazil cotton and American cotton has narrowed to 0.5-1.5 cents / pounds from the price list of cotton traders.

India cotton price competitiveness is weak, mainly affected by ICE breaking 60 cents / pound, locusts disaster in main cotton producing areas, India cotton enterprises to resume production and other benefits to promote MCX futures continued to rebound. Some small and medium-sized cotton textile enterprises in Shandong, Jiangsu and Henan are directly associated with India ginning plants and exporters. Although the purchase price has been reduced to a certain extent, the risk of loading cotton cotton quality and contract execution is also large.

At present, China's main port clearance 2019/20 M 1-5/32 India cotton (strong 29GPT) net weight quoted price concentrates 11800-11900 yuan / ton (CF2009+ basis difference, India cotton basis difference is more than 30-130 yuan / ton); M 1-/8 Brazil cotton, ME 31-336 cotton and cotton price RMB 12450-12500 yuan / ton, 12800-12850 yuan / ton; India cotton and quality cotton price difference maintains 1000 yuan / ton; Brazil cotton price difference 500-700 yuan / ton; In addition, some traders sell the annual S-6 cotton of 2018/19. For nearly half a month, the inquiry of India cotton has been cleared, and the turnover is better than the spot shipment.