US Cotton Export Pressure Eased, Non US Cotton Sales Accelerated

In recent week, although the overall price of cotton merchants is stable, cotton merchants are still willing to increase the discount to reach a deal. The basis of Australian cotton SM 1-5 / 32 G5 is 1250-1300 points, and the number of transactions is not large, but Indonesia does have procurement at this price. The basis of Brazil cotton is weak as a whole, and the basis of September shipping is 300 points. Indonesia and South Korea have both purchased cotton.

At present, Brazil cotton, Argentina cotton, West Africa cotton and East Africa cotton have been traded in various places. The rise of ice futures has stimulated textile mills to replenish their stocks, but the actual purchase price of textile mills has not changed after cotton traders have reduced the basis. Some cotton merchants have increased the discount of high-grade cotton in West Africa. After all, there was a large amount of inventory not sold last year.

Overall, the transaction price of the main ports in Asia is 60-65 cents, and the low-level is 55-60 cents. Very low cotton grades outside the US region in China. At present, the implementation of the first stage agreement between China and the United States is good, which provides support for ICE Futures, but the spot basis of non US cotton continues to weaken, and the actual transaction price remains stable.

The more ice futures rise, the stronger the willingness of cotton mills to replenish their stocks. Now China's procurement has greatly reduced the pressure on US cotton exports, and sales from other places of origin will also become easier, which may make Indian cotton buyers willing to purchase. In this case, the current international spot market is in a more harmonious state.