Enterprises' Ability To Withstand The Risk Of Fluctuating Cotton Prices Is Significantly Enhanced.

For cotton related enterprises, futures business is more robust with the help of futures tools.

According to insiders, Zheng cotton futures play an important role in helping cotton companies to control risks and sound operations.

At present, many large and medium sized cotton ginning mills, spinning mills, grey fabrics and garment manufacturers are all undertaking hedging operations in the futures market. At the same time, many cotton and Cotton Traders and importers are also using the futures market to avoid risks.

Reporters interviewed some cotton enterprises found that some cotton enterprises use the futures market tool to effectively resist the risk of large fluctuations in cotton prices, the ability of enterprises to withstand price volatility risks increased significantly, and business efficiency improved.

The cotton futures contract was listed in Zhengshang in 2004.

More than 10 years passed quickly.

During this period, our country

The annual import volume of cotton yarn has doubled, and the downstream industries of cotton have been pferred to Xinjiang, the main producing area of China, and to Southeast Asia, where labor resources are abundant.

At the same time, the global economic environment has undergone major changes. The "black swan" incident has frequently occurred, and many cotton enterprises have lost their way into the mire of losses.

In the changing market, the linkage between domestic and foreign cotton markets will be strengthened, and the allocation of market resources will become more diversified. Those who involve cotton companies will take advantage of futures and other financial instruments and platforms to avoid risks, and who will be able to achieve stable operation better.

Relevant officials in Zhengshang said that in recent years, the number of legal clients participating in Zhengzhou cotton market has been increasing, trading volume and positions have steadily increased, and the structure of investors in zhengmian city has been improved.

At present, the price of Zheng cotton has become the vane of cotton market in China.

The correlation coefficient is very high.

Through the flexible use of futures tools, physical enterprises in the industrial chain have already been very mature in product sales, raw material procurement, hedging, arbitrage and other trading modes. Zhengzhou cotton and domestic cotton industry have been together in the past 13 years to win a win-win situation.

Market participants believe that the future development of the domestic cotton industry needs more integration of Zhengzhou City and the whole industry.

According to the reporter's understanding, in the 2010-2011 years that the domestic cotton market is less affected by the policy, Zhengzheng cotton trading is more active, but the structure of investors needs to be optimized.

Data show that in 2010, the average daily turnover of Zheng cotton was 350 thousand hands, the average daily position was 180 thousand hands; in 2011, the average daily turnover was 570 thousand hands, and the average daily position was 250 thousand hands.

In the 2012-2013 year, with the adjustment of market policy, the average daily turnover and position of Zhengzhou city gradually declined.

Since 2014, with the implementation of the cotton target price policy, the development of Zhengzhou cotton has entered a new stage. The average daily volume and position have been rising. The average daily turnover is 130 thousand hands and the average daily position is 200 thousand hands. The structure of market investors has changed greatly.

By 2015, the average daily turnover of Zheng cotton was 90 thousand, and the average daily position was 250 thousand.

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The average daily volume and position change shows that the number of long-term investors is increasing. The average daily turnover is 350 thousand hands in 2010. The average daily position is only 180 thousand hands. The average daily turnover in 1-10 months this year has reached 350 thousand hands, and the average daily position has reached 320 thousand hands.

"In recent years, domestic and foreign cotton prices and yarn price fluctuations are relatively large, and the enthusiasm of industrial enterprises to enter Zhengzhou cotton market has been increasing, and the turnover rate of the market has also begun to rise."

Zheng Shang is responsible for telling reporters that with the increasing participation of legal customers, the average daily turnover of legal customers reached 111 thousand hands in 1-10 this year, and the average daily positions were 132 thousand hands.