XingJiang Cottons Are Prohibited In US, The Price Of Cotton Go Down

International cotton prices fell sharply


The third wave of the European epidemic staged a comeback, and many countries resumed the blockade, leading to a sharp drop in international crude oil, and the Federal Reserve's implication of reducing bond purchases. Cotton in the ICE period was sold off crazy-crazy, and the international cotton price fell sharply, and the ICE cotton price hit the limit. March 22-26, 2021, the main contract in New York cotton futures settled at 84.62 cents/lb, down 1.44 cents/lb, or 1.7%; On behalf of imports of cotton China main port price C.I.F. international cotton index (M) average 89.82 cents/pound, previous fell 3.61 cents/pound, or 3.9%, fold the import costs 14486 yuan/ton (calculated at 1%, with the noise and freight), previous fell 566 yuan/ton, or 3.8%, international cotton prices lower than domestic cotton prices 1035 yuan/ton, both inside and outside spreads to expand from last week 180 yuan/ton.



Cotton yarn prices both at home and abroad fell


This week, with the fall in cotton prices, the downstream cotton yarn price double drop, early production orders are coming to an end, new orders follow up weak, the market inquiry procurement enthusiasm cooled significantly. European blockade extension causes consumption concern, the international cotton yarn market turns weak, the outside yarn price drops. At present, the conventional external yarn is 463 yuan/ton higher than the domestic yarn. Downstream gray cloth goods slow down, pure cotton prices continue to decline. Polyester staple fiber prices followed oil prices lower.


The Federal Reserve hinted at reduced bond purchases, the international cotton market momentum weakened. U.S. stocks plunged as inflationary pressures forced central banks in Brazil, Russia, Turkey and other countries to raise interest rates, other emerging economies increased expectations of higher interest rates, and Powell said he would wind down purchases of U.S. Treasury bonds and mortgage-backed securities. As for the international cotton market, the cotton swab contract for 2020/21 in the United States has been basically completed, with the shipment volume reaching 64%. The practical momentum of the cotton trend during the ICE period continues to weaken. The USDA expects global cotton acreage to increase by 2.9% in 2021/22 as the U.S. Southeast enters a period of tillage preparation. At present, downstream Europe extended blockade, the world port logistics problem is serious, the United States port cargo backlog has reached a peak since February, Indian cotton delayed or slowed down the shipment of exports, cotton merchants can not quote cotton in transit. In the short term, sales of European and American textile brands in the Chinese market will decline as the boycott over H&M's suspension of Xinjiang cotton continues to simmer. It is expected that in the short term international cotton prices wide fluctuations will continue.




News disturbance market sentiment, domestic cotton prices continue to depressed trend. Recently, Yi Gang, governor of the People's Bank of China, stressed that China has a large space for monetary policy regulation. China's monetary policy has always been kept in the normal range, with sufficient tools and moderate interest rate. He stressed that China should cherish and make good use of the normal monetary policy space and maintain the continuity, stability and sustainability of the policy. In the domestic cotton market, affected by the fall in cotton prices, the sales schedule of domestic cotton purchasing and processing enterprises in this week slowed by 16% compared with last week. As of March 26, the total sales volume of cotton was 4.889 million tons, an increase of 1.331 million tons year-on-year. According to a recent survey by China Cotton.com, 85% of the 54 textile companies surveyed relied on Xinjiang cotton as their main raw material, and half of them planned to increase sales in the domestic market. In view of the sanctions imposed by the United States and Europe on cotton and cotton products in Xinjiang, 40% of enterprises think the impact is moderate and bearable. 33% of enterprises think that the impact is small and the loss is not significant. 18% had almost no effect. The impact is serious, with only 7% having caused a large loss. At present, the orders for spring and summer in the downstream market are nearing the end, and the market is in the transitional period of season change. The prices of cotton yarn and cotton cloth are falling, and the orders of downstream customers are not much. Affected by the US sanctions on cotton in Xinjiang, market fears have not been lifted in the short term, focusing on the next development of Sino-US relations, and domestic cotton prices are expected to maintain a depressed trend.



source: http://info.texnet.com.cn/detail-847728.html