Foreign demand cotton inquiry increased

Due to the impact of the ICE** December contract around 70 cents continuous swing, the Goldman Sachs index began to rollover, and the industry's expectation that the USDA monthly report will once again lower the global cotton consumption data, the national cotton quotation on October 7 and 8 was There are different degrees of downward adjustment, mostly in the range of 0.25-0.50 cents/lb.

At the recently held ICA Conference, some cotton traders and analysts believe that the international cotton price in the first half of 2013 is expected to rebound strongly and close to China's cotton purchasing and storage prices. However, purchases from textile companies are mostly concentrated on spot shipments of cotton. Regardless of whether the international cotton companies or cotton companies have very little confidence in the market outlook for cotton, the situation of low-priced West African cotton, US cotton, and European cotton inquiries and transactions is slightly better. However, due to weakening price advantage of Indian cotton, export policies are very different. The large uncertainties, together with the availability of exportable quantities, are subject to adjustment at any time. As a result, the Indian cotton’s recent export momentum has significantly slowed.

Since the recent ICE contract in recent months fell to around 70 cents, the US dollar quotation for low-grade, low-margin 2011/12 US cotton, Indian cotton, and West African cotton fell to 82 cents/lb or even 80 cents/lb. In the following, we have stimulated the interest of domestic cotton companies and trading companies, and most of them directly report and pay 40% of the total tariff clearance. According to an agency's calculation, as of the beginning of November, the number of bonded cotton in China's main ports has fallen below 350,000 tons. An import company in Zhejiang stated that the price of some SM-class US cotton, Turkey, Greece, and non-state cotton due to short length and low horse quality clearance is only between 17500-18,000 yuan/ton, and it is a net weight. Settlement, and the current domestic real estate grade 4 new cotton transaction price is also 18,500 yuan / ton, the Corps throws the original inspection 328 conversion transaction price is also 18300-18500 yuan / ton, even if the domestic cotton price fell in November and December, Outer cotton is also more resilient than domestic cotton.

Some foreign investors reported that as the expected 89 million tons of 1% tariff import quotas are expected to be concentrated in large state-owned cotton spinning companies, state-owned cotton trading companies, and large-scale privately-owned cotton companies, most of these companies have purchased or established through local ginning factories. The more mature import channels, while the theoretical quotas for processing trade and the import quotas for sliding tariffs are not only uncertain, but the time for release is even more uncertain. Therefore, domestic cotton companies and importers are very cautious about high-price and high-grade cotton orders. Worried about being stuck in quotas.