Grab High Quality Cotton, Do Not Worry About Signing The Sale Of Ao Cotton Exports To Usher In A Good Opportunity.

According to Qingdao, Zhangjiagang, Guangzhou and other port cotton traders, since the middle of May, the Australian cotton delivered to the bonded warehouse in the middle of May has shown a continuous growth trend. The early stage flowers are mainly SM 1-1/8, SM 1-5/32, M 1-1/8 and so on. The horse value is generally over 4.7, and the breaking strength is more than 29GPT and above. Chinese textile enterprises and middlemen still see the goods in the ports, mainly purchase goods directly, and they are more cautious in ordering the Australian cotton in the way of advance sale or from the hands of Australian cotton enterprises.

Australian Cotton Corp statistics, as at the end of May,

Cotton harvest has exceeded 2/3, and the total output is expected to reach 1 million tons, which is basically the same as that of the previous production. However, taking into account that about 85% of the 2016/17 cotton yield has been signed, the surplus resources are mostly in the middle and later stages of flower and low quality (upland cotton proportion). Therefore, buyers from China, Vietnam, India and Indonesia can only choose to pick up goods from the international cotton traders and exporters (non ginning plants and farmers).

In the first ten days of June, the shipping date for 6/7 months was SM 1-5/32 "Australia cotton quoted price of 91.50-92 cents / pounds, respectively, lower than C/A SM 1-1/8", SM 1-5/32 "Uzbekistan cotton 1.30-1.50 cents / pound, 0.60-0.80 cents / pound", higher than the price of 3-4 cents / pound, and 2012-2015 cents / pound, compared with the price of 8-10 cents / pound.

Some trade thinks that 6-9 months will be the time when Australia and cotton occupy the international market and export market.

Don't worry about signing sales.

First, Australia's cotton production is adequate in 2016/17 and timely supply, and the quality of medium flowers is worth buyers' expectation.

Two, 2016/17 high quality cotton,

The export has already run out of ammunition, and for overbought exporters, it is planned to replace cotton with cotton or Australian cotton. While India cotton with surplus grain is not beautiful and cheap, it will hardly pose an effective threat to Australia's cotton shape.

Three, the global textile enterprises have rapidly increased the consumption of high-quality and high-grade cotton.

Since the beginning of 2015, India, Pakistan, Vietnam, Indonesia and other countries have been developing more and more high counts, combed and high-end products. The export of 40S-50S yarn in China has been expanding.

For example, the growth rate of imported cotton in India this year reached 200%, mainly in high quality cotton, Australian cotton, Ukrainian cotton and West Africa cotton. In 2017, the import volume of American cotton in Vietnam's cotton mill was nearly 60%. In the first two months of 2017, Vietnam imported 212 thousand and 300 tons of cotton, an increase of 20.16% over the same period last year, of which the United States accounted for 59% of Vietnam's cotton flower imports. Therefore, the overall supply of 2016/17 in the global year is ample, but there are obvious signs of structural contradictions.

Four, Chinese buyers still have a certain amount of 1% cotton import quotas within the tariff.

From the customs statistics, as of the end of April, in 2017, China's total import of cotton 478 thousand and 900 tons, an increase of 199 thousand and 400 tons, an increase of 71.36%, taking into account part of the 2016 duty quotas extended to the end of February, so after May, there are still at least 450 thousand tons quota has not yet been used.

Five, the Australian dollar continues to weaken against the US dollar, which is conducive to the export of Australian cotton.

In view of the high household debt to income ratio, the Australian Federal Reserve is reluctant to cut interest rates only to promote short-term economic growth and avoid further increases in household debt and aggravate the risk of housing bubbles. Therefore, the Australian Federal Reserve continues to maintain its 1.5% record low policy interest rate since August 2016. However, the Fed's interest rate hike in June and the start of its contraction in September are continuing to warm up. The Australian dollar's weakness against the US dollar is expected to continue, and the US dollar FOB, CNF and CIF quotations will further decline.

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