Bleak spot cotton sales

Recently, ZCE cotton futures market remains firm, but sales are bleak. Currently, offers of cotton under fixed level are high. Xinjiang machine-picked grade-3128 cotton prices have been offered at 16,300yuan/mt and above, ex-Xinjiang. For basis trades, market offers are mixed. The mainstream basis of machine-picked grade-3128 cotton is at 300-400yuan/mt on ZCE Sep contract, ex-Xinjiang, but some traders adjust up the basis to 500yuan/mt and above. During May 9 and May 12, when ZCE cotton futures declined to below 15,700yuan/mt, sales were moderate, while recently, ZCE cotton futures go firmer again, and trading sentiment weakens gradually. The continued high of ZCE cotton futures triggers the worries from traders about the sales. Spot cotton sales also follow up, but downstream spinners are not willing to chase up, and could not accept the high level well, only purchasing for pressing demand.