Spot Sales Are Getting Better And Better, And India Cotton Is Expected To Be In Step.

According to cotton traders in Qingdao, Zhangjiagang, Guangzhou and other places, since the first ten days of June, enquiries and outgoing warehouses of Ukrainian cotton, Australian cotton, American cotton and West African cotton (less quantity) in 2016/17 have been much more active than those in 4 and May. The length 1-5/32 and above, the breaking strength 29GPT and the arrival of Australian cotton on the port have been cleared away by the buyer's customs clearance, and the number of them entering the bonded zone and the pfer store is not large.

The import quotas for cotton within 1% of the ports are extremely tight, and the sentiment of importing enterprises and middlemen is higher than before. The spot sale and pre-sale are also based on the principle of selling low and leaving high and selling bad.

Therefore, spot sales are getting better now. The reasons are as follows:

First, the internal and external spreads widened.

The time of signing the import is ripe.

Since mid May, ICE futures contracts have fallen sharply, dropping to 75.61 cents in June 8th, breaking the current roller coaster market starting point, down 13.27%, and the spot price of foreign cotton continued to fall.

On 8 and 9 June, C/A SM, EMOT SM and SM 1-5/32 looked forward to India cotton's one-step arrival. The CNF quotations from the Far East Main Ports of Australia cotton and SM cotton were 91.40-91.50 cents / pounds, 86.85-87 cents / pounds and 89.50-89.75 cents / pounds (Australian cotton direct export quotations were slightly lower), and the 91.40-91.50 cents / pound; the price difference between China and Singapore cotton and Xinjiang cotton double 29 cotton has risen to 400-600 yuan / ton.

Second, the quota is relatively adequate, buyers have signed the bottom.

There are still certain quotas for cotton import quota in the hands of imported enterprises.

According to customs statistics, as of the end of April, in 2017, China imported 478 thousand and 900 tons of cotton in total. In view of the fact that the import quota of 5-8 tons in 2016 1% was extended to the end of February 2017, the author decided that after May, large and medium-sized textile enterprises and traders still had at least 45-48 tons of quotas.

Third, the recent appreciation of the RMB against the US dollar is conducive to imports.

Recently, the RMB exchange rate with the US dollar has been rising for several days, and has reached a new high in nearly 7 months. The depreciation of the US dollar and appreciation of the RMB have become the focus of attention in the international financial market. In the past two weeks, the appreciation of RMB has strengthened, and the exchange rate has fluctuated at 1000 points, showing signs of volatility narrowing and becoming stable. It shows that the central bank has done nothing to stop the RMB and sell the Chinese economy.

On the one hand, ICE has been down since early June.

To stabilize, the trend is still somewhat deviated. The impression that quality is not good, price is not cheap, and spinnability is not high is not changed.

For example, on the 8 and 9 June, the price of S-6 1-5/32 was 87.20 cents / pound. Once again, it hung 0.20-0.30 SM cents / pound with EMOT SM. No matter price or quality, there was almost no competitive advantage. On the other hand, buyers had strong views on the fall of cotton prices in India in 6-9 months, and the atmosphere was strong in the short term.

First of all, the India S-6 ginning factory has broken 85 cents / pound at the ex factory price. At present, traders and exporters are trying to maintain high prices. Secondly, India's cotton growing area in 2017 is much higher than expected, and the profits are dropping at any time. Once again, India's cotton and cotton yarn exports are mutually checked, and the situation is very optimistic. It is estimated that at least 600 thousand tons of cotton will be pushed into the international market in 6-9 months.

For more information, please pay attention to the world clothing shoes and hats and Internet cafes.