The impact of state cotton auction

For the detailed influences on the state cotton auction, In summary, the cotton prices will have no large downward pressure caused by the cotton auction, but the sales of reserved cotton are bound to put pressure on spot cotton market. Due to the price and quality of the reserved cotton, some mills are unable to use the reserved cotton or show lower buying interests. However, under the influences of COVID-19 pandemic this year, part of mills has reduced the quality of cotton yarn and turns to produce low-count yarn. Therefore, this part of mills will turn to use reserved cotton, which brings pressure on spot cotton.