Develop New Quality Productivity, Green And Low-Carbon To Promote Cotton Sustainability

Recently, the 2024 China Cotton Industry Development Summit Forum with the theme of "developing new quality productivity and promoting cotton sustainability" was held in Xi'an. At the meeting, representatives from relevant government departments at home and abroad, cotton industry organizations, cotton merchants, textile enterprises, etc. conducted in-depth exchanges around the development of new quality productivity of the cotton industry, promoting the optimization and upgrading of the industrial chain, green and low-carbon sustainable development and other topics, analyzed the industry situation, and made suggestions for high-quality development of the cotton industry.

"Cotton is an important agricultural product, and the development of the cotton industry is related to people's basic life, such as clothing, and also to the employment and livelihood of many people." Chen Zuxin, a member of the Party Leadership Group and deputy director of the Council of the All China Federation of Supply and Marketing Cooperatives, pointed out at the meeting that at present, a new round of global scientific and technological and industrial change is accelerating, and in this context, it is really necessary to deeply discuss the high-quality development of the cotton industry Sustainable development. To promote high-quality and sustainable development of the cotton industry, we need to optimize and strengthen the whole industry chain, vigorously promote innovation, strive to maintain market stability, and adhere to open cooperation.

"At present, China's cotton industry ranks first in the world in terms of output, consumption and textile exports, and has developed into an important industry." Gao Fang, president of the China Cotton Association, said that in the future, the whole industry should focus on the development of new cotton productivity, accelerate scientific and technological innovation, promote industrial upgrading and green transformation, strengthen international cooperation The product strength is transformed into the ability of quality improvement, value creation and brand building to promote the high-quality development of the industry.

China is a major cotton producing and selling country, as well as a major cotton importing country and a major cotton textile and clothing exporting country, and plays an important role in the world trade of cotton raw materials and finished products.

In 2004, cotton futures were listed in Zhengzhou Commodity Exchange. Over the past 20 years, the cotton futures market has grown from scratch, from small to large. The market scale has steadily expanded, and the price discovery function has gradually become prominent. It not only provides an effective risk management tool for cotton enterprises, but also greatly promotes the modernization of the cotton industry.

At the round table forum "Review and Prospect of the High Quality Development of the Cotton Futures Service Industry in the Past 20 Years", as a participant in the initial listing of China's cotton futures, Chen Tao, the former chairman of Beijing Louis Dreyfus, said that no matter from the perspective of trading volume, position volume, delivery volume, or even the application of futures derivatives, At present, China's cotton futures derivatives have a foothold in the international market, and China's cotton futures have their own independent market with a very high degree of maturity.

"At present, the main body of the cotton industry chain is very much in favor of cotton futures. The hedging proportion of enterprises is increasing. Basis trading has also become a widely accepted tool or method in the market. The risk prevention role of cotton futures has been fully realized," Chen Tao said.

"Our company has achieved continuity because of the variety of Zheng Merchants' cotton futures." Wei Gangmin, chairman of Henan Tongzhou Cotton Industry Co., Ltd., said, "From planting to acquisition, processing to cotton trade, and then to textile weaving, clothing production, our company has completed the industrialization development, and the entire development cannot be separated from the price discovery function of cotton futures. We conduct in-depth hedging, and the reason why the enterprise can go today is to use the law of cotton futures price fluctuations to find strategic opportunities for steady development of the enterprise. "

"When cotton futures first came into the market, both the position size and the transaction size were small. After 20 years of development, the combination of futures and cash has become the business model of most spot enterprises." Ma Wensheng, chairman of Xinhu Futures, said.

"After 20 years of development, a comprehensive cotton derivatives system has been established with cotton futures as the center, cotton options, cotton yarn futures, and OTC markets." The relevant person in charge of Zheng Commercial Exchange said that cotton futures have good hedging and price risk functions. Up to now, most large and medium-sized ginning enterprises and cotton trading enterprises have participated in cotton futures trading. Since the listing, the correlation between cotton futures and spot prices has reached 0.95.

For 20 years, Zhengshang Institute has been committed to serving enterprises, service industries and the overall development of the country. Since September 2017, Zheng Shangju has set up 12 delivery warehouses in Xinjiang, conforming to the trend of accelerating the transfer of the cotton industry to Xinjiang, and serving the high-quality development of Xinjiang's cotton industry. According to rough statistics, 700000 tons of Xinjiang cotton is sold through the futures market every year to maintain its value, mainly in the form of registered warehouse receipts. Since 2016, Zhengshang Exchange has carried out 33 cotton "insurance+futures" pilot projects, helping to effectively link poverty alleviation and rural revitalization. In addition, Zhengshang Exchange has also built and developed multi-dimensional OTC business, such as OTC platform warehouse receipt buyout repurchase business. The person in charge said that in the next step, Zhengshang Institute will continue to optimize the rules and systems of cotton, help build new quality productivity of the cotton industry chain, and serve the high-quality development of the cotton industry.