China'S Cotton Purchasing And Storage Policy Is Expected To Meet Major Adjustment

< p > > in the 2013 a href= "http://www.91se91.com/news/" > cotton < /a > temporary storage and purchase plan formulated by the national development and Reform Commission and other departments, "stabilizing cotton production, operators and cotton enterprises' market expectations, protecting the interests of cotton farmers and ensuring market supply" is written in Article 1.

However, analysts pointed out that in the existing framework of collection and storage, the above goals are hard to balance.

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< p > analysts pointed out that the current purchase and storage policy and the establishment of the purchase and storage price were obviously inclined to support the upstream of the industrial chain, reflecting the state's intention to stabilize cotton production, but what was overwhelming was that the cotton growers' willingness to raise was not promoted much higher than the cotton storage and storage price.

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< p > according to the latest statistics of Cotton Association of China, the planting area of 2013 a href= "http://www.91se91.com/news/index_c.asp" > Chinese cotton < /a > is still declining, and it has dropped to the lowest level in nearly ten years, and has fallen below 70 million mu for the first time.

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< p > "the current purchase and storage price has a basic protective effect on the protection level of farmers, but it is not enough to mobilize the enthusiasm of farmers to increase production area."

Gao Fang, Secretary General of China Cotton Association, said.

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< p > analyst said that because of the rising cost of cotton picking and the lack of comparative advantage with other crops, the current cotton purchase and storage price is still not very attractive to farmers, especially in Xinjiang.

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< p > "the government's original intention is not to manipulate the market. The management department has realized the drawbacks brought by the purchase and storage, but hopes to keep the cotton industry as low as that of soybeans. It hopes to protect some cotton farmers from continuing to grow."

Founder Cai Pingxia said.

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< p > in fact, while insisting on the policy of purchasing and storage, the management departments have begun to consider more the actual needs of downstream enterprises, such as increasing the delivery of high grade cotton in the storage, and providing some import quotas for enterprises participating in the auction of cotton reserves.

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"P >" cotton planting and downstream cotton enterprises have different departments in charge. Now the processing method is, when we need to emphasize the upstream, the policy balance is tilted to cotton farmers. We need to take into account the < a target= "_blank" href= "http://www.91se91.com/" > textile < /a > industry, and demand that the policy tilt to the other end, it is very difficult to level a bowl of water.

The middle of Shanghai saw thunder.

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< p > he also said that the cotton control policy in the future is to use the current storage or to replace the subsidy, which needs to be considered at the operational level. Both of them have advantages and disadvantages, but the important thing is that the management of cotton city must focus on ensuring fair market and honest operation. "Some things that cannot be done by administrative means should be given to the market more."

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< p > market participants pointed out that even though there are many thorny problems to be solved even in the direct subsidy policy, for example, how to accurately check the planting area, avoid abuse of subsidies, and how to deal with millions of tons of stored cotton in the current state reserve, all of which need to be considered as a whole.

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< p > in the system of collecting and storing the country's a href= "http://www.91se91.com" > storage cotton inventory < /a > to a historical high level, at the same time, the other side of the domestic market is facing a serious "insufficient to eat" dilemma.

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< p > because the cotton purchase and storage price is higher than cotton spot and futures prices this year, most of the domestic cotton harvested before has been flowing into the reserve bank, resulting in the limited circulation of cotton, especially high-grade cotton in the spot market.

On the other hand, both the reserve cotton and the imported cotton are unable to enter the futures market. The source of the cotton warehouse receipt in the domestic market is strangled directly, and the market is embarrassed by no cotton.

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< p > in fact, due to the scarcity of warehouse receipts, the 1305 futures contract of cotton futures which has been delisted on the Zhengzhou Mercantile Exchange has deducted a steadily advancing market before and after the delivery month. It rose nearly 7% in just two weeks, reaching a maximum of 21855 yuan per ton, leaving the reserve price of 20400 yuan far behind.

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In order to prevent the spread of similar risks to the following contracts, Zheng P has repeatedly raised the margin of the 1309 cotton contract. As of June 6th, the exchange margin of the contract has been raised to 18%, which is rare for a ten day contract that has not yet reached the extreme trend, and highlights the exchange's vigilance against the speculation of cotton futures in the context of cotton warehouse receipts.

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< p > "now the futures warehouse receipt is still very difficult to increase. Theoretically, there is a possibility of closing the contract in September. Whether or not it will happen depends on whether the funds are concerned. But if the current storage and circulation system is not changed, the warehouse receipts problem of cotton futures will always be difficult to solve, and the function of value discovery in the futures market will not be able to play."

See thunder.

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