Foreign cotton stocks continue to grow. Why is the price still resisting decline?

According to the quotations of port traders such as Qingdao and Zhangjiagang, the net weight quotations of M 36 (1-1/8, Qianli 28GPT) and M 38 (Qianli 29GPT) on March 6 were 13400-13450 yuan/ton and 13550-13600 yuan/ton respectively. (Both are basis price quotes); and the 2018/19 SM 1-1/8 West African cotton (mainly Benin, Burkina Faso, Mali) net weight quotes are concentrated at 13,500-13550 yuan/ton; both are in late February The overall quotation dropped by 100-150 yuan/ton; although ICE and Zheng Cotton’s main contracts fluctuated widely, traders and export companies adjusted their basis, and the quotation of foreign cotton in RMB showed a state of 'bottom bottom and top top' in the market. The sentiment did not fluctuate sharply with the global outbreak of the new crown epidemic, the collapse of the US stock market, and the slow progress of Chinese textile and apparel companies in resuming work and production. According to industry analysis, the reasons for the relative resistance of foreign cotton stocks can be summarized as follows: 　　 First, port bonded and non-bonded cotton resources in January and February are concentrated in large international cotton merchants and importing companies (small traders and middlemen take risks and funds into consideration The pressure has withdrawn), and the ability to withstand the risk of price fluctuations has improved; 　　Second, traders have strong expectations of China’s large number of contracts to import U.S. cotton from March to July, the Federal Reserve’s interest rate cuts, and the results of a global joint 'anti-epidemic'. , The global economy and cotton consumption will enter the 'fast lane'; 　　 Third, the moderate expansion of the US economy, India's MSP acquisition, and the Chinese government's strong purchase and storage of Xinjiang cotton have become important factors supporting traders. The United States announced the small non-agricultural data on Wednesday evening: The number of ADP employment in the United States increased by 183,000 in February (including an increase of 172,000 in the service industry), which is better than the expected increase of 170,000, indicating that the U.S. job market is still strong and can withstand most of the reasons. The risks arising from the new crown epidemic. According to feedback from several cotton traders, the business of bonded warehouses and transit warehouses are greatly affected by the new crown epidemic, such as loading and unloading, warehouse storage, logistics and transportation, etc., resulting in an increase in intermediate link costs; plus 1, 2 The monthly bonded + non-bonded foreign cotton 'has more storage but less outputArticle Keywords: 　Cotton