According to the China Cotton Reserve Information Center, feedback from cotton trading enterprises in Qingdao, Zhangjiagang, Nantong, and other locations indicates that the volume of 2024/25 Brazilian cotton arriving at ports and entering warehouses has been steadily increasing since October. SM 1-3/16 and higher-grade, high-specification stocks have gradually increased. However, not only are bonded and shipped Brazilian cotton with 1-3/32, 1-1/8 length, and SLM/M grades still slightly abundant, but some resources exhibit slightly larger micronaire values and poorer length uniformity. This has somewhat impacted domestic textile mills/intermediaries' inquiries and purchases of Brazilian cotton.

According to inspection data released by Brazilian authorities, the proportion of 2024/25 Brazilian cotton with uniformity above 80% stands at 94.2%, down 1.1 percentage points year-on-year. The share with short fiber content below 10% is 77.3%, a decrease of 2.1 percentage points compared to the previous year (79.4%). Considering that the proportion of cotton with a yellow depth below 9 reached approximately 87%, a significant increase of 15.1 percentage points year-on-year, industry analysts predict that the color grade of Brazilian cotton for shipments from November 2025 to February 2026 will continue to improve compared to September and October shipments.

Based on trader quotations: - November/December shipment Brazilian cotton M 1-5/32 (28/29 GPT) basis differentials are mostly quoted at 6.5-8.5 cents/lb (against ICE 2603 contract) For November/December shipments of SM 1-5/32 (29 GPT), the basis is concentrated at 8.75-10.5 cents/lb. Currently, the port spot basis for M1-5/32 (28 GPT) is approximately 8.5-9.75 cents/lb, 1-2 cents/lb higher than the ship cargo basis.

A medium-sized cotton enterprise in Zhangjiagang, China, noted that while ICE cotton futures rebounded with volatility in recent trading sessions, most basis differentials for bonded port and USD-denominated imported cotton remained unchanged. Price differentials for Brazilian, U.S., and Australian cottons stayed stable. However, the basis for RMB-denominated foreign cotton that has already cleared customs at ports has seen partial increases. For instance, from November 24-27, the RMB basis for Brazilian cotton M 1-5/32 (28 GPT) at China's major ports reached 3,900-4,100 yuan/ton (referencing the CF2601 contract). while the basis for US cotton 31-337 (29 GPT) was only RMB 4,000/ton (2024/25 crop year old cotton). However, the basis for US cotton 31-437/38 (31-34 GPT) reached RMB 5,150-5,300/ton.

As an integrated internet platform providing benchmark prices, on November 28, the benchmark price of cotton lint from SunSirs was 14,881.50 RMB/ton, an increase of 0.15% compared with the beginning of the month (14,858.50RMB/ton).

Application of SunSirs Benchmark Pricing：

Traders can price spot and contract transactions based on the pricing principle of agreed markup and pricing formula (Transaction price=SunSirs price + Markup).

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