The warehouse is the physical delivery certificate formulated by the exchange. What does the reduction of futures positions mean? The following is Bian Xiao's introduction.

The decrease in warehouse receipts indicates that spot traders plan to sell goods in the spot market:

Reason 1: Spot traders expect the basic gap to weaken. In other words, the increase of futures prices is greater than that of the spot market, or the decrease of futures prices is less than that of the spot market. In the case of a rise, the registration will be cancelled first, and the futures price will be re-registered after a sharp rise. In the case of decline, immediately cancel the registration and sell it in the spot market. Therefore, if the price drops after a period of decline, then the price will become stronger in the later period.

Reason 2: At present, the futures price may be, and the spot price may be sold directly in the spot market. In this case, the spot demand is generally large, indicating that the price may become stronger in the later period.

Reason 3: The funds of spot dealers may be eager to exchange goods.