ICE Cotton Futures Centenary Benchmark Faces Revision

< p > at the beginning of 2013, the ICE < a href= "http://www.91se91.com/news/index_c.asp" > cotton > /a > futures should be hung out, but the contract was postponed in 2015.

According to market analysis, the benchmark of ICE cotton futures is likely to be revised. The layout of ICE in Asian cotton < a href= "http://www.91se91.com/news/index_s.asp" > market < /a > is about to start.

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< p > < strong > International pformation < /strong > < /p >

< p > at present, most of the main commodities listed on ICE have been internationalized. Their coffee and cocoa futures have a delivery warehouse in Brazil, and raw sugar futures have a delivery base in Philippines, Thailand and Taiwan regions of China.

In contrast, only cotton futures are closed - not only for us cotton deliveries, but also for delivery banks in the US.

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< p > ICE to adjust the cotton futures contract, on the one hand, to adapt to the changing market environment, and to deal with the increasingly fierce competition on the other hand.

According to recent foreign media reports, the International Cotton Association (ICA), which is made up of cotton traders, calls for changing the status quo of the cotton futures market and gives two options: first, to launch new cotton contracts that are more suited to market needs on other exchanges, and the two is to extend the delivery sites of ICE cotton contracts to the United States.

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The background of P ICA's appeal is that ICE cotton futures prices are increasingly susceptible to human distortions.

The cotton traders in the United States believe that since only the US cotton is involved in the delivery, when the US cotton sales peak ends in July 31st every year and the US cotton is almost sold out, ICE cotton futures "a href=" http://www.91se91.com/news/index_cj.asp "> price < /a" will always be manipulated, and "playing the international market will help to eliminate this manipulation".

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< p > according to an early plan, cotton from Brazil and Australia will be included in the cotton futures delivery target of ICE with the US cotton, but some businessmen are not satisfied. They hope that more cotton will be able to participate in the delivery.

Recently, ICE has proposed informally that it will consider setting up a cotton futures delivery bank in Dubai and Malaysia in Asia.

According to an insider familiar with the ICE market, ICE cotton 2015 contract is likely to wait until the new rules and arrangements are landed.

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< p > < strong > affecting Asian cotton textile industry < /strong > /p >

< p > from the relevant data, after the 80s of last century, the United States was the second largest cotton consuming country in the world, and the proportion of cotton consumption gradually decreased. Now it has become a country where cotton consumption is not outstanding after ranking in China, India, Pakistan and Turkey.

Today, Asia is the world's largest cotton consumption area with the pfer of the global textile center.

In terms of cotton cultivation, in 1990, the United States produced about 15% of the world's cotton, while the total output of China and India accounted for about 1/3.

Since then, the share of cotton output in the United States has begun to shrink. At present, cotton production in China and India has accounted for nearly half of the world's total cotton output.

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Under the background of double shift of production and marketing, the revision of ICE cotton futures Centennial benchmark is not difficult to understand. < p >

The planning of the Asian delivery point, especially with the establishment of China's maritime convenience Malaysia delivery library, has aroused interest from the relevant industry in China.

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< p > "ICE if there is a cotton delivery bank in Asia, the impact is undoubtedly positive."

Wei Gangmin, chairman of Tongzhou cotton industry in Henan, told reporters that the main markets for cotton sales in Southeast Asia are Indonesia, Thailand, Vietnam and Bangladesh. They are very close to Malaysia ports.

China is the largest consumer of cotton in the United States. In recent years, 30% to 40% of US cotton exports have flowed to China.

At present, the relevant domestic enterprises directly import cotton from the United States, the fastest shipping period is nearly a month, if the future delivery from Malaysia to the mainland, shipping time as long as two to three days, the convenience greatly increased.

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< p > "Chinese enterprises have received few cotton futures through the ICE futures market directly. Our company has only begun to try to pick up American warehouse receipts in 2012."

Wei Gangmin said that at present, domestic enterprises do not know much about the rules, procedures, costs and quality assurance of participating in the external delivery.

"As for Southeast Asian enterprises, I believe there are not many deliveries before, but it is estimated that the delivery volume will be increased after the establishment of the delivery base in Malaysia."

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< p > founder futures analyst Cai Pingxia believes that China's cotton import quota management, even if enterprises buy cotton futures in ICE, still need to have quotas, and at present, China has not yet released Futures Company overseas futures agency business, China's related enterprises to participate in the external channel is relatively limited, therefore, even if ICE in Asia, set up cross cutting library, short-term impact on the domestic market is limited.

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< p > however, Cai Pingxia also said that if other Asian cotton spinning enterprises are more involved in ICE cotton futures hedging in the future and can conveniently purchase cotton, the cost advantages of these cotton spinning enterprises will be more obvious, which will gradually weaken the competitiveness of China's cotton textile and garment industry in the international market.

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< p > "yesterday, the average price of the national cotton store was around 18400 yuan / ton, compared with the annual minimum 1% tariff quota of 894 thousand tons of cotton, including freight costs less than 14000 yuan / ton, and the quality is better."

Cai Pingxia believes that sustained high costs will adversely affect domestic cotton downstream enterprises' participation in international competition.

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< p > < strong > timely opening up the overseas stock exchange and setting up the delivery repository < /strong > /p >

< p > it is understood that overseas exchanges such as LME have been seeking to set up cross cutting banks in mainland China for many years, but they have not been able to do so. In the context of accelerating the internationalization process of our futures market, will the future regulators release relevant policies?

They believe that the integration of domestic and foreign markets is conducive to the growth of cross market arbitrage groups such as CTA, thereby enhancing the activity of each other's market, which is more conducive to achieving the price discovery function in the futures market.

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< p > "there is still some contradiction between China's cotton import quota policy and the market."

Wei Gangmin believes that the establishment of a bonded delivery Library in the early stage can be turned into an ordinary delivery bank after the conditions are ripe, which should be a better path.

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