Risk Awareness Of Cotton Enterprises Should Be Strengthened.

< p > since the beginning of this year, the government will pilot Cotton Subsidy Policy in < a href= "//www.sjfzxm.com/news/index_p.asp" > Xinjiang < /a >.

Although the implementation details of the direct subsidy policy have not yet been announced, the progress of the pformation of the domestic cotton market from "policy city" to "market city" is obviously accelerating, and the enthusiasm of the majority of cotton enterprises to get rid of the shackles of policy and rush towards the free market is rising. This is evident from the recent active purchase and sale of cotton market, especially the frequent fluctuation of domestic cotton price and turnover volume.

< /p >

< p style= "text-align: center" > < img border= "0" align= "center" alt= "" src= "" /uploadimages/201403/11/20140311091221_sj.JPG "/" < > > "

< p > the industry believes that, on the one hand, the improvement of marketization degree of < a href= "//www.sjfzxm.com/news/index_c.asp" > cotton < /a > provides more market access for the majority of cotton enterprises and is conducive to the realization of market mechanism.

On the other hand, the probability and market risk of cotton price fluctuation are also greatly improved, and the risk awareness of cotton enterprises should be enhanced.

< /p >

In March 5th, P issued a letter of risk indicating that the cotton futures price fluctuated significantly in recent years. In order to ensure the healthy and standardized operation of the cotton futures market, Zheng merchants will pay close attention to the operation of the market and strengthen market supervision, and take further supervision measures according to the market operation.

The Risk Reminder also specifically referred to the risk of cotton futures 1405 contracts approaching the month of delivery.

< /p >

In March 7th, Zheng Shang issued a notice to prevent the risk of the cotton futures market. Since the settlement in March 14th, the cotton 1405 contract trading margin standard has been adjusted to 15%. P

< /p >

< p > "futures market has the function of anticipation of price, and it has a hype amplification effect on the factors that have appeared, are emerging and potentially affecting prices.

Cotton market structure is undergoing qualitative change, and with the advent of the new cotton growing season, cotton futures must be more sensitive.

Liu Benchuang, a cotton dealer in Dongying, Shandong, told the futures Daily reporter that the special period will inevitably lead to a special market, which will also increase the market risk. The risk warning letter issued by Zheng Shang and the standard of raising the margin of the paction are to remind the cotton enterprises to enhance their sense of risk at the time of improving the market level of the cotton market.

< /p >

< p > at present, farmers in Xinjiang, Hubei, Hebei, Shandong and other main cotton producing areas are preparing their seedlings.

Market participants believe that there are differences in the adjustment of policies < /a > adjustment in different regions, and the low purchase price of seed cotton in the past two years. The cotton production situation is not optimistic this year. The process of great changes in cotton city will continue for a longer period of time, and the risk of cotton market will continue to increase. A href= "/a"

In the mainland cotton production area reporter has learned that this year many cotton farmers intend to reduce cotton planting area, increase corn, vegetables and other crops planting area.

< /p >