Sounds strange but this is what is being advised to spinners during these difficult and
uncertain market conditions, worldwide. Spinners should sell yarn before they buy cotton. No doubt, the impact of temporary caution due to the global economic crisis in 2008 has slowly disappeared. But the world now faces a new crisis in which even developed nations with strong economies are also worried and feel directionless. All this due to the harsh fact that during the past few years the rules of global business have changed. The basic rules of demand and supply determining the price are no longer valid thanks to the speculative buying and selling in the commodity markets. Expectations, rather than the values of real production and consumption, determine the price. In recent years, papers – rather than actual commodities – have been traded physically. Brokers who have not seen any real cotton are the ones who determine the price. Continue reading “Sell Yarn Before Buying Cotton” →