The introduction of cotton yarn futures has made the cotton textile industry chain hedging tools more comprehensive and enriched. It is expected to bring more opportunities for the stable development of listed cotton enterprises. The “first institutional investor†was supported by Zheng Shangsuo and Zhifang Information held in Beijing recently. (Cotton and Cotton Yarn Strategy Meeting), the participating experts said so. The meeting attracted a number of investment institutions from industry, securities, and funds to participate. Click to learn about cashmere sweater information Click to know immediately how to buy cashmere sweaters Click to learn about cashmere sweaters Want to know more about cashmere sweater, cashmere sweater information, cashmere sweater specials, cashmere sweater acquisition information: accessible Pay attention to WeChat public number "Cashmere sweater industry platform" to learn more about cashmere sweater information Look fresh head to toe with mens bottoms that reflect your style. Make a memorable impression from top to bottom with men's chino pants, skinny jeans, fleece joggers, and more that are cooly designed and always ultra-comfortable.Consider Men's short in varieties like drawstring shorts, graphic shorts, jogger shorts, and denim shorts keep you cool all season long. Suit Trousers,Men'S Formal Pants,Mens North Face Trousers,Lightweight Cotton Trousers Shaoxing Yidie Garment Co.,Ltd , https://www.yidiesuit.com
In the face of increasingly complex and ever-changing market conditions, cotton yarn futures, cotton futures and PTA futures form a complete series of tools for the protection of the textile industry chain, providing more choices for cotton textile industry to control market risks. Cotton yarn futures will be even more affected by the cotton spinning industry. Favor, especially the listed cotton enterprises will focus on.
At the meeting, relevant experts conducted a detailed analysis of the domestic and foreign cotton market situation. Cheng Jie, deputy general manager of China Cotton Information Center, said that in recent years, with the advancement of the cotton target price reform, the risk of cotton price fluctuations has increased. From the current weather and domestic cotton growth, this year's domestic cotton is better whether it is planted area or yield. However, domestic cotton production is still in short supply, and it is necessary for the auction country to store cotton and make up for the shortage of imports to meet consumption.
Assistant Zhu Xihua, assistant general manager of the China Cotton Group's cotton division, believes that the supply and demand of cotton on the international market is relatively loose, and the United States, the largest cotton exporter, has a good weather, the planting area has increased, and the yield is expected to increase, making the international cotton supply continue to increase in the new year.
In general, this year, cotton supply and demand is tight and there is no market demand. The exchange rate fluctuation of the RMB is accelerating, and the degree of global economic interaction is increasing. The cotton textile enterprises are facing complex market conditions and the enthusiasm of enterprises to use cotton futures hedging increases. "As the market uncertainties increase, the industry's participation in cotton futures trading is getting higher and higher. Especially this year, the number of companies using the basis trade to develop cotton circulation and trade has increased significantly." Some listed companies have taken the lead. effect.
It is understood that after the introduction of cotton futures in 2004, some listed companies in the cotton yarn industry chain actively participated in cotton futures trading. For example, Huafu Color Spinning, Vosges shares, Lianfa shares, etc., participated earlier in the cotton futures trading and not only locked in part of the cotton. Price and cost fluctuations also effectively prevent and control the risks of other derivatives transactions.
Li Wei, deputy director of the Everbright Securities Research Institute and chief analyst of textile and clothing, introduced that the listed cotton enterprises have effectively controlled market risks through cotton futures trading and also stabilized their earnings. “Huafu Colour Spinning 2016 Annual Report and 2015 Annual Report disclosed the company. Participate in the investment of derivatives and futures such as cotton futures and forward foreign exchange."
The listed cotton enterprises actively participated in cotton futures due to the smooth operation of the cotton futures market and the better functioning of the cotton futures market. After more than a decade of development, the cotton futures have continued to mature. The average daily trading volume has increased from tens of thousands of hands a day to the current 200,000 hands, and the holding positions have maintained more than 300,000 contracts each day, which can meet the needs of enterprises for hedging. From the perspective of the correlation coefficient of futures prices, the correlation of futures prices is increasing steadily and stable above 0.9. The change in cotton basis rates is also becoming more and more regular, which provides a better market environment for cotton industry customers to participate in cotton futures hedging.
Li Xin believes that as the industry's acceptance and familiarity with financial instruments continues to increase, the linkage between cotton yarn and cotton prices will become closer, and the fluctuation of cotton prices will be more rapidly conducted downstream. In the future, listed companies may be actively used as industry leaders. For cotton yarn futures to achieve hedging, risk management and other purposes, cotton yarn futures pricing, adjustment of supply and demand and other functions will be further manifested.
“At present, Huafu Spuntex, Xinye Textile, and Vosges are selected into the cotton yarn futures delivery warehouse, and it is expected to enter the cotton yarn futures market first with the advantage of the factory. It is expected that more cotton spinning listed companies will participate in cotton yarn futures trading in the future.†Indicated. 
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