Cotton Futures Trading Shrinking, Reactivating Futures Market Function

< p > according to statistics of Zheng Shang, from 2011 to 2013, the total turnover of cotton No. 1 dropped to 14 million 905 thousand and 400 hands from 278 million hands and 42 million 67 thousand and 300 hands, down 84.87% and 64.57% respectively from the same period last year. The cumulative turnover decreased from 36 trillion and 259 billion 459 million yuan and 4 trillion and 188 billion 861 million yuan to 1 trillion and 481 billion 316 million yuan, respectively, which decreased by 88.45% and 64.64% compared with the same period last year. < /p >
"P >" cotton prices will revert to the market after direct subsidy, and the futures warehouse receipts will not be short of storage and purchase. Cotton futures as a tool to detect prices and evade risks will be heavily used by cotton companies. Cotton futures will revive and the futures market will continue to play an important role. " Chen Xiaoyan said. < /p >
< p > since April this year, cotton contract activity has been significantly enlarged under the expectation of direct subsidy policy. The number of cotton holdings rose rapidly, from 109 thousand and 300 at the end of 4 to 5 at the end of 5, and 123 thousand and 700 at the end of 6. As of July 11th, the position was further enlarged to 156 thousand. < /p >
< p > "it can be predicted that cotton enterprises will pay more attention to the futures market when the cotton starts to go public in 9 and October this year. Referring to the price of the futures market, the price of the cotton seed cotton will be sold out and the seed cotton will be sold in bulk in the futures market in a timely manner. Only in this way can he avoid the risk of falling prices in the cotton market." Zhang Wenmin said. < /p >
< p > it is reported that there are now part of a href= "//www.sjfzxm.com/news/index_c.asp" > traders < /a > using futures hedging to sell cotton in the new year to the textile enterprises in advance, and the risk has been locked ahead of schedule. Zhang Wenmin told reporters, "some forward-looking experts are already doing some pre hedging on futures, the results are very good, from the beginning of the 17000 yuan / ton fell to the current 15000 yuan / ton below, some people's yield reached 30%-40%." < /p >
< p > people in the industry believe that, while making use of the "a href=" //www.sjfzxm.com/news/index_c.asp "target price < /a > policy to protect the interests of the top growers, we need to vigorously develop the agricultural insurance market, develop large-scale cotton planting specialized households, cooperatives and farms, seriously cultivate the trading platform for agricultural futures and options market, and encourage the market participants to take the initiative to take advantage of these market means to avoid risks and enhance the ability to resist risks, so as to achieve the best implementation effect of the policy. < /p >
< p > reporter recently learned that in order to further promote the development of the "a href=" //www.sjfzxm.com/news/index_c.asp "cotton futures" /a market, Zhengshang is actively developing cotton textile and raw silk and other textile industry chain futures varieties, improving the cotton textile industry chain system, better serving policy reform, and providing better futures services for the real economy. < /p >
< p > with the gradual opening of the cotton market, the risk of cotton business is increasing. It is urgent to participate in the cotton futures market. Zhang Wenmin suggested that the relevant enterprises should take the combination of futures operation and risk control methods and take part in the operation of cotton futures warehouse cotton, spot cotton hedging, futures cotton futures and cotton futures, and according to the annual business plan of textile enterprises, in accordance with the "cost plus cost plus profit" method of balancing the base price transaction standard, the cotton price, quality, quantity, loan funds, warehousing and transportation, and the market price trend will be predicted in a phased and proportionate way. The quantity, amount, month, basis, trading direction, ladder price ratio, and band optimization of the basic price band of large cotton cotton yarn futures market will be determined. < /p >