Cotton futures are tentatively listed in late May

Introduction: "the approval of the State Council has arrived at the CSRC As soon as the approval of the CSRC arrives, we will launch it immediately The tentative date for the exchange is May 28." On May 13, a staff member of Zhengzhou Commodity Exchange told reporters The speed of zhengshangsuo surprised the reporter The person said, "the main thing is that we have done a lot of preparatory work." On May 15, the consultation on trading rules of cotton futures of Zhengshang Institute was completed From May 15 to 16, a training course for analysts of cotton futures was held The listing of cotton futures of Zhengshang Institute is proceeding in an orderly manner Since 1995, zhengshangsuo has started the preparatory work of cotton futures, which has been repeated several times In August 2003, Zhengshang office issued a document on the design and trading rules of cotton futures contracts On April 15, 2004, Zhengshang began to solicit public opinions on cotton futures contracts and relevant systems On May 15, Zhengshang will report the revised documents to relevant departments again according to the opinions of all market participants, waiting for the final listing approval "Zhengshang office was ready six months ago." Cotton futures expert Yin Baokun said A person from central China Futures said that the most important work of the exchange for the launch of such an important variety is to contact with cotton related enterprises Their participation is the key to the listing of cotton futures As for the training of cotton futures knowledge of spot merchants, Zhengshang Institute has done a lot of meticulous work In early March, China reserve cotton information center held a training course on cotton futures knowledge in Beijing More than 80 cotton related enterprises sent personnel to participate in the training According to a person from China reserve cotton information center, these trainees are not only direct participants in future cotton futures, but also shoulder the task of popularizing and promoting futures knowledge within the enterprise after learning In the training course, Zhang Jinsheng, deputy general manager of zhengshangsuo, attended the meeting and spoke Ji Guangpo, director of the third Department of market development of zhengshangsuo, conducted training on cotton futures practice and conducted simulation trading in the training The second training course will be held in Zhengzhou on May 17 The first cotton futures training course in China sponsored by Hubei Yinfeng Industry Group Co., Ltd and co organized by Zhengzhou Futures Exchange and Zhengzhou Yisheng information company was held in Wuhan, Hubei Province on May 11 Wang Chengzhou, director of the Development Department of Zhengshang Institute, and Yao Xiang, assistant director, gave a speech on how to hedge cotton futures in the futures market when cotton futures were about to be listed Yinfeng group is one of the top five cotton related enterprises in China In 2003, Yinfeng group achieved a total revenue of 1.07 billion yuan, an increase of 81.4% over 590 million yuan in the same period last year Hu Kai, who specializes in cotton futures at Yinfeng, said that according to officials involved in the training, Zheng's internal listing is tentatively scheduled for May 28 But now it seems that it is not certain that it can be so fast, but the deployment of Zheng's cotton futures listing is indeed very intensive In fact, domestic cotton spot merchants are quite familiar with the futures market, because there is an electronic matching market in the national cotton storage center, similar to the futures market, but investors are generally limited to spot merchants, Hu said As a spot trader, the purpose of their participation in the market is mainly to hedge, through direct application for non brokerage membership of the exchange A person from mid-term Huazhong futures said that their preparation work started a few years ago, but the listing of cotton futures is always uncertain, and the work once carried out had to be put on hold Now, the preparation work has started again Contact with spot merchants to provide them with feasible investment reports, timely market information, quotations, etc As for the training course of cotton futures trading held by Zhengshang from May 15 to 16, the futures and spot traders in Beijing are more enthusiastic to participate How big is the market for cotton? Due to the impact of imported cotton, the fluctuation range is very large, which is a good variety for investors Hu Kai predicted that the market capacity of cotton futures will definitely be much larger than that of wheat futures China's cotton production has been in a state of instability, with annual output ranging from 3.2 million tons to 6.25 million tons According to the data, cotton prices fluctuate little, but they are fast and substantial "In recent years, the market has been in a state of sometimes shortage and sometimes overstock." A cotton industry expert said In April 2001, the highest price of cotton once reached 13000 yuan per ton By the end of 2001, the price fell to about 8000 yuan per ton, a drop of 62.5% After the spring of 2002, driven by the increase of textile and clothing exports and the growth of underwear consumption, the demand of cotton market grew steadily, which made the price of cotton rise slowly Since July 2003, the rate of price increase has been accelerated In August, the price of factory arrival reached a high of 11000 yuan / ton, an increase of more than 50% The drastic price fluctuation worries cotton users In recent years, the drastic fluctuation of cotton price has made the textile industry suffer from the increasingly severe international competition The instability of raw materials, the instability of cost and the lack of quality assurance are the major problems that perplex the textile industry Public information shows that China is the world's largest cotton production and consumption area, with an average annual output accounting for more than 20% of the world's total output With the opening of cotton market, especially after China's accession to the WTO, the domestic cotton market has been gradually integrated with the international market Cotton production, operation, processing and textile enterprises are facing greater risks Cotton related enterprises are increasingly required to use the cotton futures market for hedging According to China's WTO commitments, by 2004, the cotton import quota will be increased to 894000 tons annually, accounting for about 20% of the current domestic cotton production in the textile industry And cancel the franchise of cotton, foreign enterprises can directly import cotton, and then distribute it in China They can also participate in China's cotton business, as well as purchase, process and operate cotton in China The domestic cotton trade will be fully integrated with the international market This will have a huge impact on China's cotton production, circulation and consumption "Cotton futures are also crucial to assist in the development of the western region and to solve the well-off problems of contemporary cotton farmers." One industry person said There are nearly 100 million cotton farmers in China The sharp decline of cotton price has caused huge losses to farmers The listing of cotton futures can correctly guide cotton production, meet the requirements of cotton related enterprises to avoid price risk, and is conducive to the integration of China's cotton price with the international market Yin Baokun, an expert of zhongchu cotton information consulting center, has moved his office address from Beijing to Zhengzhou He told reporters that the listing of cotton futures is a great pleasure The future development of this variety mainly depends on its growth environment All parties involved in the market, including the government, should take good care of this variety.