Outer Cotton: European debt eased to boost the market for foreign investors

Thanks to the good news that the leaders of the euro-zone member countries reached a package agreement to resolve the debt crisis on October 26th, the scale of aid was raised to 1 trillion euros, and Greece’s sovereign debt was cut by 50%, global commodities rebounded on the 26th and 27th. Agricultural products also rebounded strongly with the stock market and heavy metals. On the 27th, the ICE** December contract once again rushed to 100 cents, causing the market to speculate on this direction. However, most cotton traders believe that the current livelihood of large-scale agricultural products (including cotton) is mainly due to the short-term breathing and adjustment opportunities of the European debt crisis and the US economic data is slightly better than expected. The cotton rise has completely followed economic factors, from global cotton. From the perspective of supply, consumption, and other basic levels, the conditions supporting the rise or high price of cotton prices are not established. The ICE** December contract will continue to test the support price of 99 cents in the near future.

Since mid-October, there has been a certain amount of sales of high-grade US cotton in 2010/11 and Australian cotton in 2011 since China's main port bonded cotton. Sales of Indian cotton S-6 and West Africa cotton are not satisfactory. Although the actual transaction price of some foreign S-6s is 8-10 cents/pound compared with the US cotton price, several large cotton companies have stepped up the “staking their claims” on the domestic market: First, a large foreign company is in Qingdao. Ports such as Zhangjiagang and Shanghai acquired Indian cotton for 2010/11 at a price of 18,400 yuan/ton. The targets of acquisition were mainly the hands of domestic small and medium-sized traders and bonded cotton in ports. Some traders already started to sell. Second, they stepped up in mainland China. (Mainly in Shandong, Jiangsu, Hubei, Hebei, and Anhui provinces) and Xinjiang to carry out pledges of warehouse receipts. The pricing method is to determine the pledge price by the Zheng cotton May contract minus 2,000 yuan/ton, and send it to the designated supervisory warehouse. That is, payment of 80% of the purchase price (calculated on the basis of Zhengzhou Cotton May contract minus 2000 yuan), and these foreign parcels, unencoded bales and large bales can be pledged; third, some international cotton merchants arrived in Hong Kong in November. The quantities of Chenmian in 2010/11 and new cotton in 2011/12 are relatively large, but the quotations for new cotton are relatively small. The main energy is to sell Chenmian cotton, especially Indian cotton and West Africa cotton in 2010/11.

According to a domestic large-scale cotton import and export company, the sales of port bonded cotton have been gradually deserted since mid-October. After the 25th, the customers of low-grade India and West Africa cotton are very few to inquire, but occasionally new and old customers look for high levels. American cotton. On the 27th, a lot of trading companies in Qingdao port only had 1-2 counters, and even the small ones did not ship even one ton. Although in October an international cotton merchant had more than 2,000 tons of Pakistani cotton in 2010/11, the quotation was also lower than that of Indian cotton by 10 cents/lb. However, most domestic traders and cotton companies did not have interest in cotton and cotton. Large, only less than 500 tons of Pakistani cotton have been sold since the beginning of October. The main reason is that the current level of cotton and cotton in the 2010/11 season is low and there are many short staples, and the color change due to rainfall and sea transport is relatively large, plus 26, 27 The price of the domestic 4th-grade cotton bale has dropped to 18,000-18200 yuan/ton, and the quoted price for the 4th-grade cotton bale is only 18300-18500 yuan/ton. The Pakistan lint has no advantage in terms of price and quality.