Looking For: Australian Cotton Lost China'S Major Customers Export Situation Is Not Optimistic

According to a source, a major Australian cotton buyer in China has stopped operation for many years recently, and the long-term purchase has been unable to be realized. A considerable part of Australian cotton orders in 2020 and 2021 have been affected.

In recent years, it is normal for cotton merchants to compete for the origin resources of Australian cotton, and the prices quoted are far away from the actual psychological price of the factory. Moreover, in the past two years, the cotton merchants transported the unsold cotton to the warehouse in the bonded area in advance. In fact, it did not receive very good results in the end, because the demand of China was obviously reduced. Australian cotton has always been very popular with Chinese mills, but now the start-up rate of Chinese textile enterprises is insufficient, and the demand for more than 50 yarns is very weak.

In May, Australia exported only 8759 tons of cotton, of which 4098 tons were shipped to China. From August 2019 to may 2020, a total of 256600 tons were exported, including 159500 tons to China and 24000 tons to Vietnam. At present, the cotton harvest in Western Australia is over. As there is no ginning plant, the newly harvested seed cotton will be transported to Queensland for processing and export. If there is more efficient shipping and marketing from the port of Darwin in Indonesia, it will be able to provide more efficient transportation and marketing from the port of Darwin.

It is reported that a large range of light rain occurred in Australia's New South Wales over the weekend. This week's rainfall continued, and the total rainfall is expected to be 10-25 mm, similar to the situation in Southeast Queensland. Overall, more and more rainfall is needed to improve water supply capacity in Australia's cotton growing areas.

At present, the basis of FOB price of Australian origin began to decline. With the rise of ice futures, the basis of Australian cotton origin fell to 650 points (December 2020 contract) in 2020 and 875 points (may 2021 contract) in 2021. In 2021, the basis of the CIF price of Australian cotton SM 1-5 / 32 is still as high as 1900-2000 points (contract in May 2021), and SM 1-3 / 16 is 2000-2100 points, which is more than 500 points higher than the same grade of American green card cotton.