Market Analysis: Why Does Brazil'S Cotton Import Rank First For Two Consecutive Months?

 

First of all, in the fourth quarter of 2021, the United States cotton was greatly affected by the backlog of port goods, tight containers and soaring sea freight. The shipment and delivery were not enough, and the delay of contract execution was common;

Secondly, according to the Convention, the shipping period from October to December 2021 is the alternation of old and new cotton such as American cotton and Indian cotton, and the resources are "green and yellow" period, while Brazil cotton is the stage of large-scale listing and centralized sales of new cotton in 2020 / 21;

Thirdly, compared with the US cotton with the same quality and index in 2020 / 21, the quotation of Brazilian cotton shipping and bonded resources is lower by 2-3 cents / pound (although some traders quote Brazilian cotton against American cotton, the bargaining space is slightly larger), and the color grade and strength of new cotton have advantages.

In addition, Brazil's cotton varieties are relatively single, and there is little difference between the two major production areas, which is conducive to cotton spinning enterprises to cotton blending and cotton yarn quality stability.