In The Future, We Can Better Play The Role Of Cotton Futures.

Standing at the starting point of the new era, facing the spring breeze of reform and opening up, we will continue to write a new chapter in the development of China's market economy, putting forward higher requirements for the cotton industry and the development of cotton futures.

The target price reform and purchase and storage policy needs to be constantly optimized and optimized. The international trade order is facing major adjustment and great changes. There are more uncertainties in the stable development of foreign trade, steady investment, steady anticipation, and impeding the high quality development of cotton and textile industry.

Under such a background, cotton futures, which are born through reform, will also become more "beautiful" because of the deepening of reform and play a more important role in the healthy development of the cotton and textile industry.

The cotton futures market needs to rely on Reform in order to maintain vitality. The reform can solve the problems in the development of the market and promote the quality and efficiency of the cotton industry.

The cotton futures price will be included in the market price collection system and the target price subsidy policy should be improved.

The implementation period of the current target price subsidy policy is from 2017 to 2019, and the current subsidy is divided into two times, which are appropriated in November of the year and February of next year. During this period, the spot market price will directly affect the amount of subsidy received by cotton farmers.

Futures market has the function of price discovery. If the cotton futures price is included in the market price collection system, it will help improve the pparency of the price, facilitate the cotton farmers to analyze and calculate the comparative income relationship between cotton planting income and different crops, adjust the planting structure of agricultural products timely and improve the efficiency of land use according to market conditions.

We should establish a sound banking exchange mechanism to improve the financial market's ability to serve the real economy.

Futures market has become the main channel for the management risk of cotton enterprises. More and more cotton entities are carrying out hedging and pledge financing through futures market.

At present, the loan from the agricultural development bank is the blood of Xinjiang ginning factory, which accounts for 60% to 70% of the share of the acquisition fund.

However, the agricultural development bank requires the cotton purchasing enterprises to use the loans issued by the agricultural development bank to pay the agricultural loans issued by the corresponding batch of goods before the registered warehouse receipt, so that the warehouse receipts can be entered into the warehouse.

Market participants suggest that the relevant departments, based on the hedging situation of cotton enterprises, improve the loan approval system for related enterprises, solve the difficulties encountered by cotton business enterprises in the futures market, and enhance the financial market's ability to serve the real economy.

We should vigorously promote the mode of subsidization of market-oriented agricultural products, and continue to expand and optimize the pilot of "insurance + futures".

In 2019, the Central Document No. 1 requested that the pilot program of "insurance + futures" should be steadily expanded to explore the order agriculture + insurance + Futures (right) pilot project.

The reporter understands that Zheng will implement the spirit of Document No. 1, continue to expand the scope and quantity of "insurance + futures", focus on optimizing the implementation of the pilot scheme, explore a better market subsidy mechanism, and comprehensively enhance the quality and efficiency of the "insurance + futures" pilot work.

At the same time, let more government and market forces to promote "insurance + futures" in depth.

Improve the opening degree of cotton futures in China.

China is the world's largest cotton consuming country and the second largest cotton producing country. However, the international cotton trade is usually based on the price of ICE cotton futures in the United States.

In addition, China's cotton futures are not open to the outside world, and cotton futures are not allowed to deal with foreign investors temporarily.

Industry experts suggest establishing a system to support the internationalization of cotton futures and promoting the introduction of cotton futures into overseas investors.

Comprehensive revitalize cotton yarn futures, cotton yarn futures in a liquidity basis, explore the import yarn delivery and overseas delivery business.

Through a series of active changes and innovation, the market parties are expected to see more efficient function display, more open market system and more perfect trading system, which will effectively enhance the toughness of the cotton industry, improve the operation efficiency of the industry, enhance the ability to deal with all kinds of risks, and create a better environment for the development of cotton industry.