In the first half of last week, in the international spot market, except for Indian cotton, export transactions from various origins were very few. Only Indian cotton transactions were smooth, and the price was only 75-80 cents/pound, which was 15-16 cents cheaper than US cotton and Australian cotton. point. There are significant purchases from China, Bangladesh and other markets. Textile mills are actively looking for special price varieties to meet immediate demand, including West African cotton, Argentinian cotton, Brazilian cotton and low-grade American cotton, which are all very popular.
In the second half of last week, as ICE futures plummeted, inquiries from various places became obviously active. However, due to the sharp fluctuations in prices, textile mills were still cautious. Although the price of upland cotton fell sharply, the price of long-staple cotton rose instead of falling. The quotations of American Pima cotton, Israeli Pima cotton and Egyptian Giza series all increased, and long-staple cotton stocks became increasingly tight.
Although ICE futures plummeted last week, textile mills still took a wait-and-see attitude, waiting for the market to stabilize before replenishing their stocks. Traders are cautious about adjusting the basis difference between US cotton and Australian cotton, while the basis difference between Brazilian cotton and West African cotton has weakened. In the process of rising yarn prices, both spinners and end consumers hope that cotton prices will rise slowly and moderately. However, this sudden rise and fall will only undermine the confidence of the textile industry chain. Most participants hope to see ICE futures stabilize for a period of time. , and then conduct a new round of purchases after returning to 86-87 cents. If ICE falls to this level, US cotton and Australian cotton will fall below 100 cents, which will help sales.
At present, the spot quotations in major markets have begun to strengthen, but textile mills may just be testing to see if the current cotton price can guarantee profits. Polyester staple manufacturers not only increase their quotations according to crude oil prices, but also Compare cotton prices. The current rise in cotton prices will only be sustainable if yarns (including chemical fiber yarns) can achieve good transactions at high prices. Macro factors also need to be considered, and concerns about rising inflation may also cause consumers to hold off on purchases. </p
