Xinjiang Cotton Price Advantage Is Not Imported Cotton Sales Or Blowout

In the near future, Xinjiang cotton is not selling well. The sales of imported cotton in Qingdao port are very hot. The sales price of the double pick 28, represented by West Africa cotton, Brazil cotton and Mexico cotton, is 14900-15700 yuan / ton, and the sales price of double 29 represented by India cotton is 15200-15600 yuan / ton.

As the net weight of imported cotton is higher than that of Xinjiang's cotton gross weight or public settlement price, the mainland's delivery is flexible, and the factors such as the textile tax quasi tariff quota expire at the end of February and the issuance of new quota, the textile enterprises' enthusiasm for purchasing foreign cotton is higher than that of Xinjiang cotton.

According to statistics, as at the end of March, Qingdao Port imported 300 thousand tons of cotton stock. Due to the recent import price of cotton less than Xinjiang cotton, traders ordered large quantities of the ready packed goods represented by India cotton. It is estimated that a large number of low priced imported cotton will arrive at the end of March to mid April.

It is understood that at the end of February cotton prices in India were as low as 78 cents / pound, equivalent to 13300 yuan / ton (with their own quotas). In March 6th, India's domestic cotton prices continued to rise. By March 28th, the price rose to 85 cents / pound, equivalent to 14200 yuan / ton (with its own quotas), but compared to domestic cotton picking 29 pairs of cotton 15700 yuan / ton (gross domestic product in Xinjiang), Xinjiang still had price advantage.

A trader in Qingdao port predicts that, with the increasingly clear Sino US negotiations, the possibility of RMB appreciation and the issuance of quotas will increase. If Xinjiang cotton prices are still high, a large number of low-priced imported cotton will gradually enter the country to seize the market of Xinjiang cotton. At the same time, hedging units will further impact spot traders by using futures hedging appliances, which deserves the attention of the industry.