Anatomy Of Textile Industry: Lifting The "Red Cover" Of Cotton Yarn Futures Contracts

Zheng issued a notice on cotton wool futures contracts and rules system, and openly solicited opinions and suggestions on cotton yarn futures contracts and rules system for the whole market.

After the announcement of Zheng Shang's consultation on cotton futures contracts and rules system, I received many calls from Vietnam, India and many other business partners, asking for details. In order to seize the market opportunities, a cotton trader in India even asked me to help him buy a cotton mill in Henan.

Wu Faxin, chief strategy officer of Shanghai yarn Bao Technology Co., Ltd. told futures daily that the current international market has not yet launched the cotton yarn futures. The global cotton yarn market has long been short of a pricing benchmark. Therefore, the cotton yarn market at home and abroad is very concerned about the interest rate coming out of the cotton yarn futures listed by Zheng Shang.

Reporters in the market research found that the main body of cotton and cotton market in China, especially those who directly engaged in cotton and cotton yarn business, showed high enthusiasm for the cotton yarn futures listing. The current cotton yarn futures contract's "words and deeds" affect the market's nerves.

From the content of the cotton yarn futures contract and its trading, delivery and wind control system, the contract design has been closer to the market demand, and the planning of the benchmark products, the way of delivery, the size of the paction and the size of the delivery unit have all been carefully considered and planned. It has made preparations for the future import of cotton yarn delivery, upgrading of benchmark deliveries, and introduction of warehouse deliveries and so on, and has reserved room for innovation.

What is the future of cotton yarn futures going to be listed? Let's raise her "red cover" and take a look at the characteristics of cotton yarn futures.

First, the delivery benchmark is 32 carded yarn.

The official in charge of Zhengshang said that the proportion of cotton yarn in the cotton market in China, the position in the market, and the supply and demand of the cotton yarn Market and the import and export situation in the country, it is very close to the market practice in the early stage of the cotton yarn futures listing, with 32 cotton combed yarn as the benchmark.

At present, the annual demand of cotton yarn in China is about 8 million tons, and the domestic volume is about 6 million tons, and the annual import volume is about 2 million tons.

At the same time, there are many kinds of cotton yarn in China, and there are more than 700 kinds of yarn at present.

Cotton yarn futures contract benchmark deliveries are selected as 32 carding yarn, mainly based on the large scale of the market, and the market can provide enough delivery if futures trading starts, so that the risk of delivery can be prevented.

In addition, the selection of 32 carding yarn is also in line with the market structure of small and medium enterprises, and can meet the demand of market hedging more widely.

More importantly, 32 cotton combed yarns are recognized as low price, medium and high price benchmark in the industry, which is conducive to the price discovery function in futures market.

The cotton blending ingredients are consistent with the cotton futures benchmark deliveries and facilitate the arbitrage of industrial enterprises.

From the current development situation of cotton yarn Market in China, the market shows a large number of enterprises, low industrial concentration, and the gradual pfer of production structure to high cost combed products, the increase in import volume and the slowdown in growth rate, the reversal of internal and external spreads, and the advantages of domestic cotton yarn.

Second, the trading volume is 5 tons per hand.

The official said cotton yarn futures trading unit was set at 5 tons per hand in order to maintain consistency with cotton futures and facilitate investors to cross species arbitrage pactions.

At the same time, it is set to be 5 tons per hand and the contract value is moderate. According to the average price of 32 cotton carpets in the past two years, the average price of cotton yarn is 20000 yuan / ton, and the first cotton yarn futures contract is worth 100 thousand yuan.

According to the margin standard 5%, the first hand contract is 5000 yuan, which is suitable for investors to participate in the paction.

Third, the minimum change price of the contract is 5 yuan per ton.

The person in charge said that the price fluctuation space is appropriate, which is conducive to forming continuous prices and improving the accuracy of price discovery.

Two is the cotton yarn market quotation is intermittent, low frequency, with 50, 100 yuan / ton as the unit.

Futures market pactions are continuous and high frequency, and excessive quotations are not good for buyers and sellers to conclude pactions and form continuous and effective prices.

Three is consistent with cotton futures, facilitate investors cross species arbitrage, improve the efficiency of capital use.

Fourth, the contract ups and downs with the margin is a combination of + 4% and 5%.

The official said that the price fluctuation of 99.9% cotton yarn spot days was less than or equal to 4%.

The 4% and 5% limit and margin design can fully meet the demand of wind control.

Fifth, the delivery method is physical delivery, and the delivery unit is 20 tons per hand.

The responsible person said that at the early stage of the listing, cotton yarn futures were mainly based on factory and warehouse delivery, and credit warehouse receipts were issued.

At the same time, the warehouse is ready to be ready for the import of cotton yarn into the futures market.

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Cotton yarn futures deliveries are mainly based on factory and warehouse deliveries. First, it is in line with spot trading habits.

In the current cotton spot market, most textile enterprises are mainly based on order production, and there are fewer third party professional social databases in the market.

The two is to meet the diverse needs of the downstream.

Because there is a substitute for cotton yarn delivery, the goods can be negotiated to pick up the goods. The storehouse can provide the increase and discount range according to the products it produces. The investors who have the demand can choose their own, which can effectively expand the range of delivery and the scope of participation of enterprises.

The futures delivery unit of cotton yarn is 20 tons, and the deliveries of the same delivery unit should meet the requirements of the same manufacturer and the same batch.

This is mainly based on the following considerations.

First, it matches the mainstream pport mode of spot trade, so that buyers can pick up goods and organize deliveries.

The two is to adapt to the production and trade habits of large scale consumer enterprises and attract buyers to participate in delivery.

In addition, cotton yarn futures are delivered in Shandong, Henan and Jiangsu, and the auxiliary delivery place is Zhejiang (with reference to freight forwarding discount).

In this way, the characteristics of the production, supply, storage and sale of cotton yarn and the concentration of logistics are fully taken into consideration in the benchmark delivery place.

At present, the production and consumption of cotton yarn in China are more concentrated. The location of cotton yarn futures delivery is basically the main producing area and the main selling area.

Sixth, the delivery quality standard is 4 basic attribute indicators and 9 quality standard indicators.

The person in charge introduces.

The quality standard for futures delivery is 18.5tex (32 British) carded cotton single cheese (ring spinning), the actual twist factor is 300 - 420, cotton fiber content is 100%, and the heterosexual fiber content is less than 80 /20kg, of which 4 basic attribute indexes are linear density 18.5tex, actual twist coefficient 300 - 420, cotton fiber content 100%, and foreign fiber content less than 80 /20kg.

Seventh, cotton yarn futures delivery basis price is cotton yarn futures benchmark delivery goods at the base delivery place when the vehicle plate delivery tax price (including packaging).

In addition, all the expenses for the storage of the warehouse receipt and the loading to the front of the vehicle plate shall be borne by the factory library, and all the expenses after loading the vehicle plate shall be borne by the delivery party.

Eighth, cotton futures delivery process is "three day delivery method".

According to the reporter, cotton yarn futures standard warehouse receipt and cotton futures current delivery system is consistent, for the "three day delivery method", factory warehouse non standard warehouse receipt cotton yarn delivery self reported rise or discount.

Ninth, the import of cotton yarn is not allowed.

The person in charge said that in order to enhance market stability, cotton yarn delivery was not allowed at the early stage of cotton yarn futures listing.

The reason is: first, in order to avoid the price impact of imported cotton yarn, two is to ensure the steady start of cotton yarn futures, and promote healthy development of the market and smooth operation.

It is understood that cotton yarn futures will be released after the smooth operation of the listing.

It is also understood that the registered warehouse / factory library should bear the responsibility of quality retroactive.

Tenth, warehouse receipt management and wind control are strict.

After the listing of cotton yarn futures, physical delivery is carried out in the form of factory library, which involves capital pfer, application and generation of warehouse receipt registration, and control of warehouse receipt quality.

At the same time, after the listing of cotton yarn futures, wind control work is also very important, which has a very important impact on how investors make trading, positions and capital utilization strategies.

The management of cotton futures warehouse receipts is based on the cotton futures delivery method announced by Zheng Shang. Cotton yarn futures are delivered in kind. At the early stage of the listing, cotton yarn futures are mainly based on factory and warehouse delivery, and credit warehouse receipts are issued.

The industry believes that if investors plan to carry out the cotton yarn futures warehouse receipts paction, we need to pay special attention to the registration and validity of the cotton yarn futures warehouse warehouse receipt.

It is understood that after the listing of cotton yarn futures, if futures investors want to register the standard warehouse receipts of cotton yarn factory library, they must first contact the cotton yarn delivery plant library. After the payment of the agreed price and the agreed price, the warehouse will submit the warehouse receipt registration application, while the factory library should provide bank guarantee and cash when applying for warehouse receipt registration.

The standard warehouse receipt of cotton yarn factory is valid for 4 months, and is cancelled in February, June and October.

In view of the cotton warehouse futures warehouse warehouse inspection and the treatment of foreign fiber, futures investors can choose the corresponding specifications and grades according to the announcement information of the factory library.

The quality of out of stock cotton yarn is not tested, and the factory library provides quality certificate of conformity with the delivery standard and product inspection report.

If there is any objection, the two sides can negotiate and fail to negotiate. The buyer may apply for inspection before the goods are out of stock.

In view of the processing of cotton yarn warehouse receipt and foreign fiber, we mainly adopt the warehouse warehouse receipt delivery + complaint handling mechanism + foreign fiber inspection specification, so that the problem of foreign fiber can be complemed with the right to claim and recover the owner.

It is especially worth the concern of futures investors that they should pay attention to after delivery.

The proposal is limited by time. It is necessary to find the problem within 1 months.

The problems should be put forward in time, and the two sides should consult with each other and handle them smoothly after consultation.

　　上述負責人表示，把上述棉紗期貨合約的主要特點與棉花期貨合約的特點對比分析可以發現，棉紗期貨合約設計等呈現6個明顯特點：一是與棉花期貨合約保持高度一致，如兩個品種的交易單位等基本一致，銜接性較強，便于棉花產業鏈企業更好利用期貨市場，進行各項交易;二是交易標的明晰，交割標的為當前國內棉紗現貨市場主流品種;三是交割地集中，便于產業企業就近交割，有利于節省成本與提高效益;四是上市初期實行全廠庫交割，實際上是品牌交割，有利于交割標的的標準化、規范化操作與質量把控;五是進口棉紗不允許交割，有利于建立國產棉紗市場價格風向標，棉紗期貨價格的代表性將大大增強;六是未來進行棉紗期貨交割時，鄭商所將對棉紗進行嚴格的質量控制，嚴格把控異纖等問題，有利于促進我國棉紗整體質量的抬升，增強國產棉紗的競爭力。

Ji Guangbo, executive deputy general manager of Shanghai international cotton trading center, told reporters that the upcoming cotton silk futures contract is a remarkable event in the economic life of the cotton textile industry chain. It will provide a new tool for textile enterprises to avoid price risk, greatly increase the total volume of participating enterprises in the industrial chain, and provide the first pair of futures with the strongest correlation to domestic and foreign investors, and open the opportunity of arbitrage in the middle of the cotton industry chain, so as to provide new channels for solving the financing difficulties of enterprises.

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"There are many new highlights in the design of cotton yarn futures contracts. They are very close to industrial needs, whether they are delivery benchmark products, trading, delivery units, and initial factory repository delivery. They not only have their own unique personality, but also have many similarities with the cotton futures contracts that have been listed."

Ji Guangbo believes that the market base of cotton yarn futures listing is solid and the linkage of industrial chain varieties is strong. After the listing, cotton futures are expected to become the strongest futures varieties in the domestic futures market.

At present, the development of China's textile industry is in a better position, and sales of cotton yarn and cotton cloth are increasing. Cotton products are more innovative and value-added, and the pace of upgrading and upgrading of cotton enterprises is quickening. This will lay a solid foundation for the future of cotton yarn futures.

Ji Guangbo believes that the future cotton yarn futures market, domestic cotton, cotton yarn, clothing and other market linkage will be highlighted, the market will see more investment opportunities.

Statistics show that since 2014, China has

The correlation between cotton prices reached 0.97, and the correlation between cotton and PTA prices reached 0.75.

After the listing of cotton yarn futures, there are many arbitrage opportunities between the cotton products and the cotton yarn substitute market, especially in the cotton textile industry chain.

Textile enterprises can purchase raw materials in the cotton futures market while they can sell products in the cotton yarn futures market, so as to achieve the goal of locking processing costs and profits, not only completing arbitrage operations, but also locking the risks at both ends of the operation.

An industrial figure calculated to reporters: a textile enterprise should carry out the processing profit hedging operation in the futures market.

Assuming that the cotton futures price is 15000 yuan / ton and the cotton yarn price is 23000 yuan / ton, the implied processing profit on the futures disk is 23000-15000 x 1.1 (cotton processing cotton yarn loss calculated by 10%) =6500 (yuan / ton).

If the actual processing cost of a textile enterprise is 6000 yuan / ton, it can short the processing profit in the futures market, that is, more cotton and air cotton yarn, and lock the processing profit of 500 yuan / ton.

If the actual processing cost of a textile enterprise is 7000 yuan / ton, it can do more processing profit, that is, empty cotton and more cotton yarn, and reduce processing cost.

For more information, please pay attention to the world clothing shoes and hats and Internet cafes.