Apparel / Textiles & Accessories

According to feedback from some private cotton processing enterprises in the central cotton area of India, the purchase price of Kupang and Mabang seed cotton has exceeded 7,500 rupees/quintal (105.25 cents/lb) since early October, which is nearly higher than the MSP price of Indian medium fiber length cotton. 1800 rupees/quintal (2021/22 MSP is 5726 rupees/quintal); the northern cotton region of Punjab has been harvesting and selling seed cotton in late September. The current seed cotton purchase price has risen to 7,200-7300 rupees/quintal ( Compared with the initial increase of 200 rupees / quintal or more), it is also significantly higher than the purchase price of MSP.

A private cotton company in Kupang stated that as of early September, the CCI cotton inventory had been less than 500,000 bales (hurricane Gurabu brought heavy rains, and low temperature caused resistance to cotton harvesting and processing in India. Sales and export volume of CCI cotton inventory Surge); the sharp increase in fertilizer, pesticide and labor costs in 2021 has significantly increased farmers’ expectations for the sale price of seed cotton. In addition, the Indian government has not abolished the plan to impose a 10% tariff on imported cotton. Therefore, 202/22 The annual purchase price of Indian seed cotton has soared year-on-year, which is justified.

A medium-sized cotton trader in India has serious concerns about cotton exports in 2021/22. On the one hand, the basis of Indian cotton cargo and bonded cotton has continued to rise recently, and the gap with competitors West African cotton, Brazilian cotton and US cotton has narrowed. For example, on October 11-12, the bonded M1-5/32 Indian cotton basis of each Chinese main port was 5.5-6.5 cents/lb, and the M1-5/32 Brazilian cotton basis was only 10.75-11.75 cents/lb; another On the one hand, as the tension between China and the United States eases, Chinese buyers have increased their contracted purchases of US cotton in 2021/22. Accordingly, their attention to Indian cotton and their orders have weakened; the Pakistani government has little hope of removing restrictions on Indian cotton imports, and the Vietnamese cotton textile industry Once again caught in the "deep and hot" of the epidemic, cotton enterprises are worried about the weakening of export momentum. However, considering the stronger weather in Kupang in 2021/22, S-6's yield and quality indicators are expected to be satisfactory, and it will be more attractive to cotton companies in China, Indonesia, Vietnam and other countries. Therefore, the Kupang private ginning plant is rushing to collect the atmosphere. Overweight.