Some cotton sales contracts may meet resistance

Recently, some foreign businessmen and cotton importing companies have expressed that they are more concerned about the smooth implementation of the contract in January, February and March 2020. Some buyers have notified the sellers to postpone delivery by 15-30 days.　　Industry analysis, first, since late January, the price gap between domestic and foreign cotton has continued to narrow, and the competitiveness of foreign cotton has declined significantly. The current port bonded M 1-1/8 Brazilian cotton, SM 1-5/32 West African cotton under 1% customs clearance costs 13,200-13400 yuan / ton, and the internal base warehouse 'Double 28' Xinjiang machine picking cotton weight 1,3000-13200 The price is basically the same at RMB/ton; while the quotations of Brazilian cotton and Indian cotton by port traders are 300-400 yuan/ton higher than Xinjiang cotton; second, affected by the continuous spread of new crown pneumonia, cotton textiles in most provinces such as Jiangsu, Zhejiang, Henan and Shandong The resumption period of enterprises was postponed to mid-to-late February, and the purchase of cotton and other raw materials was delayed accordingly; coupled with various factors such as transportation vehicles and road restrictions, buyers took the initiative to suspend contract execution; third, the downstream consumer market since mid-to-late January The rapid cooling and even freezing, the pressure on the collection and payment of goods has increased, and the capital flow of some textile companies has tightened. Therefore, the postponement of contract implementation will help cotton-using enterprises to resume production and expand recruitment. In response to the USDA's latest monthly report increasing the global cotton ending inventory by 2.5 million bales (increased production and decreased consumption), traders and textile companies generally believe that, on the one hand, China's new type of pneumonia will not only affect domestic cotton consumption demand, but also In addition, the import of cotton yarn from India, Pakistan, and Vietnam has greatly 'dippedAnd impose unnecessary trade restrictions. Article Keywords: 　Cotton