China Cotton network news: For more than a week, the volatility of ICE cotton futures increased significantly, the main May contract stood at 90 cents/pound, once opened 95 cents/pound, but nearly two trading days hit the top diving, February 20 intraday low again approaching 90 cents/pound, a “roller coaster” market let some institutions, cotton companies, speculators dizzy, difficult to adapt.

A medium-sized cotton trading company in Qingdao said that ICE futures rose so sharply in a short period of time, making it more difficult for cotton companies to quote bonded cotton, spot and far month cargo (US dollar resources), some deposits have not been paid, and the high-price contracts just signed are expected to have resistance, and only buyers and sellers can negotiate, some of the performance or delay performance or even termination of the contract.

From the feedback of some cotton enterprises in Qingdao, Zhangjiagang, Nantong and other places, due to the significant rise of ICE cotton futures in the early Spring Festival, the price of cotton inside and outside the 1% tariff (or sliding tariff) is obviously inverted, coupled with the cotton textile enterprises have resumed work and production after the holiday, and the raw material inquiry/replenishment has not been effectively started. In recent days, the bonded cotton and cargo shipments based on the quotation are relatively dull or even cold; Some small and medium-sized cotton enterprises with rigid demand for imported cotton mainly purchase port price RMB resources.

Overall, before the end of February, the concentration of textile enterprises and the willingness to take a large number of goods are weak, which forms a strong contrast with the enthusiasm of cotton traders to hang orders and ship goods. From the survey point of view, affected by the Spring Festival holiday factors, from early February to mid-February port cotton storage slowed down or even suspended, and in February to port/storage of the United States cotton, Brazil cotton and other cotton quantities are still high, so nearly a month and a half, the port cotton inventory has continued to grow momentum, some international cotton merchants, large cotton enterprises survey forecast, as of late February before, The total cotton inventory in China’s main ports has broken through the 500,000 tons mark, reaching 51-520,000 tons.

Source: China Cotton Information Center