China Futures 20 Years Cotton Futures

As a matter of National economy and people's livelihood The listing of major agricultural products and cotton futures is China. Cotton industry It provides a strong guarantee for healthy development. In 2009, cotton futures contracted 17 million 69 thousand and 400 hands, with a turnover of 1 trillion and 297 billion 110 million yuan, up 58.03% and 82.66% respectively from the previous year, and 368 thousand and 600 hands at the end of the year, up 537.09% from the end of last year. According to the statistics of the Futures Industry Association of America, the turnover of Zheng cotton futures increased by 1271.3% in the first half of 2010, becoming the biggest growth star in the turnover volume of global agricultural futures. cotton futures After the listing, spot enterprises took part in the initiative. By the end of 2009, the number of accounts involving cotton enterprises was 2326, including most of the large cotton enterprises in China.

"Yinfeng mode" is a typical model of spot enterprises using cotton futures. Hubei Yinfeng cotton Limited by Share Ltd has built up a production, supply and marketing chain between cotton growers, cooperatives, spot and futures with the help of "company + cooperative + cotton farmers" and "order + futures" mode. There are three highlights in the Yinfeng mode: first, the cotton cooperatives as a bridge between Yinfeng company and farmers, initially realizing large-scale production of cotton, stable supply and reliable quality, so that enterprises can steadily expand their scale of operation. At the same time, through planting subsidies, field guidance, planting insurance, and "two returns", we can stabilize the productive relationship between enterprises and cotton farmers. Two is the Hubei Agricultural Development Bank's support for cotton enterprises to participate in futures. Three, we should make full use of the function of futures market finding prices and hedging, and launch the "bottom price" of cotton purchase with the hedging price of futures market, transfer the spot price risk, ensure the full repayment of loans in time, and achieve a win-win situation between enterprises and cotton farmers. Cai Yajun, general manager of Yinfeng company, believes that "the company has developed from the past robbing cotton and gambling market to stabilizing the supply of goods through orders, making use of futures lock profits. The company has found a way to avoid risks, and dare to let go of hand and foot operations, while stabilizing the profits and nurturing agriculture at the same time."