Cotton Quotes Rebound Across The Board, Port Shipments Are Still Weak

It is understood that, by the April 6th ICE cotton futures rebounded sharply, today's Zhengzhou cotton contract strong follow-up to pull, Qingdao, Zhangjiagang, Shanghai and other main ports 4/5 month sailing cotton, bonded cotton, customs clearance quotes uniformly brush up.

However, most traders did not adjust the basis, and wait-and-see, anxiety and panic were not significantly relieved. On the one hand, cotton companies and investors are skeptical about the slowdown in the growth of new European and American champions. While India and other Southeast Asian countries and Africa once again become the focus of the epidemic, it is likely to dump the "King explosion". On the other hand, crude oil prices have plummeted and skyrocketed, and the market situation is still uncertain. OPEC+ emergency meeting has been postponed. Saudi Arabia, Russia and the United States will still be able to return to the negotiating table after "War Within Three Kingdoms".

In April 7th, Qingdao port 2019/20 M 1-5/32 (strong 28-29GPT) RMB quoted price 114 was 50-11550 yuan / ton; M 1-1/8 Brazil cotton RMB quoted 11750-11850 yuan / ton (including M 36, strong 28-29GPT), up 100-200 yuan / ton compared with last week; SM 1-5/32 (strong 29GPT), 1-5/32 The price of 1-7/32 (strong 390GPT) cotton is 14000-14200 yuan / ton, 14900-15100 yuan / ton, and keeps stable.

Shandong, Jiangsu, Henan and other textile enterprises and middlemen said that at present, the price difference of West African cotton in each port is relatively large, and the quality difference is also very prominent. We must be cautious in signing contracts. Such as 2019 M 1-3/32 Malian cotton quotes 11250-11300 yuan / ton, and SM 1-1/8 Benin, Cote d'Ivoire and other origin cotton quotation is as high as 11700 yuan / ton.

From the survey, although the inquiry and shipment of cotton outside the port continued to be sluggish and weak in 2/3 month, although the impact of the new crown epidemic on the global economy, trade, exchange and cotton consumption is not yet turning point, traders' quotation adjustment basically follows ICE or zhengmian (most of the domestic market still uses the "CF2005+ basis" instead of the CF2009+ basis). First, since the middle of February, the cotton price has jumped three times, and some cotton enterprises have suffered heavy losses. Two, the RMB has continued to depreciate for more than half a month, and the import cost of customs clearance has increased. Three, in response to the impact of the epidemic, the central bank has continuously cut interest rates and released liquidity, helping the small and medium enterprises to resume production. In April 3rd, the macroeconomic regulation and control that the market anticipated finally came again. The central bank played two cards, namely, the directional reduction and the reduction of the excess reserve ratio.