Xinjiang: Spot Sales Are Weak, Cotton Enterprises Avoid Risks

Recently, the spot market in Xinjiang is in a doldrums. According to a cotton trade and logistics company in Northern Xinjiang, the spot sale of new cotton has been light since the launch of the new cotton market. The mainland textile enterprises are not active in the inquiry purchase, and with the purchase and purchase as the main part, some small textile enterprises even made preparations for the holiday ahead of schedule.

At present, cotton enterprises are generally pessimistic about the market outlook. They choose to sell at the spot price in the early stage, and sell some of the high water hybrid cotton which does not meet the delivery standard or the premium is not ideal. With the implementation of the cotton rotation, cotton enterprises have a more sales channel, trying to save the market to avoid market risks. Compared with the spot price sale, a considerable number of enterprises are worried about the two public inspection of the transportation to the mainland, and worry about the quality. Therefore, there is a negative correlation between the rise and fall of futures prices and the enthusiasm of enterprises for auction and storage.