Analysis: Factors Affecting Zheng Cotton Futures Price

Zheng cotton futures provides a good tool and means for risk management for enterprises.

The main factors that affect the price of zhengmian are as follows:

1. macroeconomic factors

A country's macroeconomic situation has improved, cotton textile demand has increased, cotton prices have risen, and cotton prices are highly correlated with the world economic situation.

2. cotton

The increase or decrease of cotton planting area and output will have a certain effect on the price of cotton. The spot price of cotton rose from 15 thousand yuan to 18 thousand yuan in 2010, which is due to the decrease in the planting area of the whole country and the whole world.

3. weather and disasters

Judging from the past years, weather conditions in August, September and October are the key factors determining cotton output and quality, and also the primary factor to invest in cotton futures.

4. cotton demand

The increase or decrease of cotton consumption demand and the improvement or deterioration of the sales and operating rate of the downstream textile enterprises will also have a certain impact on the futures spot prices of cotton.

5. alternatives

6. national policy factors

Because cotton is an important economic strategic material, the state regulation policy is relatively perfect.

The general control measures adopted by the state include collecting and storing, releasing and storing, adjusting import quotas, adjusting import and export tariffs, and lending support to related industries.

7. the impact of related foreign markets

China has a large import volume of cotton and more export of cotton textiles. Therefore, China's cotton prices have a strong linkage with the world's cotton prices, and foreign markets have a certain impact on the price trend of the Chinese market.