The gap in foreign cotton quotas widens, Australian cotton has outstanding quality

According to reports from port cotton traders in Qingdao, Zhangjiagang, Guangzhou and other ports, ICE’s main contract has recently been trading sideways at 68-69 cents per pound. Both the long and the short are waiting for the US cotton export report to be released. The port bonded US cotton and Australia for 2016/17. The quotations of CNF and CIF such as cotton, West African cotton (mainly from Benin, Cameroon, Zimbabwe, etc.), and Australian cotton, which is about to arrive in Hong Kong, have stabilized in an all-round way. On July 19 and 20, Australian cotton SM 1-1/4, SM 1-7/32, SM 1-3/16 (breaking specific strength 33GPT, horse value G5) were quoted at 90.90-91 cents/lb and 89.90, respectively. -90 cents per pound, 88.90-89 cents per pound, of which there is a bargaining space of 0.10-0.15 cents per pound for large firm contracts (more than three containers in a single delivery); and SM 1-1/ The quotation of 8 Australian cotton is basically the same as that of S-6 1-1/8, both at 86-86.20 cents/lb. An international cotton trader said that since mid-June, Chinese buyers have paid attention to and purchase Australian cotton mainly for mid-term flowers with lengths of 1-5/32 and above, and strong 30GPT and above. Interest in early flowers of 32 equal length declined significantly. The USDA report shows that Australia’s cotton production in 2016/17 is about 958,000 tons, and the exportable volume is about 849,000 tons (the actual export volume in 2015/16 is 677,000 tons); the total output of the Australian Cotton Company is estimated to reach 1 million tons, but With the acceleration of Australian cotton processing, contract signing, and shipment progress, ginners and exporters have reported that the output of Australian cotton may be overestimated, and the actual output may be around 900,000 tons. On the one hand, the yield forecast of cotton planted in dry land is relatively high. The growth momentum of Australian cotton area in 2016/17 mainly came from dry land in non-irrigated areas, and the overall yield declined significantly; on the other hand, the main cotton-producing areas encountered a long period of rainfall from March to the picking period, which not only affected the strength of cotton, horse value, etc. The indicators have a certain impact and are also bad for production. Moreover, the 2016/17 years of India, Vietnam, Indonesia and other Southeast Asian countries’ yarn mills’ attention to Australian cotton and their enthusiasm for signing contracts continue to rise (as of the end of April, the progress of Australian cotton export contracts has reached 80 %), the output statistics also have errors such as duplication and false reporting. From the survey, the ICE contract failed to break 69 cents/lb for four consecutive days; the US cotton export report may be more bearish than bullish; coupled with the rebound of ICE’s main force from 66.28 to 68.47, triggering US cotton, Australian cotton, and West African cotton When the spot quotation responds and rises by 2-3 cents per pound, sourcing invitations from Southeast Asia and China show a downward trend (the supply of cotton import quotas within the 1% tariff in the Chinese market is seriously insufficient, and transfers and rent-seeking are 'difficult to find' The external factors are relatively large), some textile mills have begun to try 'ON-CALL' ordering. Textile companies in Henan, Jiangsu, Shandong and other places said that since the value-added tax rate for cotton imports has been reduced from 13% to 11% from this month, theoretically speaking, the RMB price of foreign cotton should be lowered after customs clearance, which is beneficial to cotton enterprises. Purchasing or buyers lower their quotations, but due to the prominent situation of import quotas within the 1% tariff, whether there is more and less porridge, the direct result of the widening of the domestic and foreign cotton price difference or the release of policy 'dividends' is the transfer of quotas and the continuous increase in rent-seeking prices. The quotations of U.S. cotton and Australian cotton for customs clearance are higher than 2016/17 Xinjiang cotton by more than 1,000 yuan/ton; coupled with the 'difficult road' in purchasing quotas, there are fewer and fewer traders operating and operating imported cotton, and there is competition. The slowdown, but the 'big wave scouring the sand' is far from over, and small and medium cotton merchants are gradually being blocked from the industry 'threshold'. Article Keywords: 　Foreign Cotton Quota