Textile Enterprises Want To Borrow Cotton Yarn Futures To Prevent Default Risk

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Xiaobian network to introduce to you is that textile enterprises want to borrow cotton yarn futures to prevent default risk.

"China is a big country of cotton production and consumption. The cotton industry is related to the income of cotton farmers, which is related to the operation of the textile industry and is related to the development of the economy and society."

Wang Xiaobing, deputy director of the Ministry of agriculture and the market and economic information department, said on 18, at the "2014 Zhengzhou agricultural products (cotton) futures forum", in recent years, with the change of the domestic and foreign economic environment, China's cotton industry development is facing new situations and challenges. For example, agricultural production has entered the stage of high input and high cost, and the linkage between the international and domestic markets has been strengthened, and domestic and foreign cotton prices have been obviously upside down, so it is more and more difficult to maintain the safety of China's cotton industry.

More importantly, the contradictions and problems accumulated in the temporary purchase and storage policy of cotton are becoming increasingly prominent. It is more and more difficult to rely on policies to stabilize production and market.

At the same time, the cotton industry enterprises are also facing the risk of price fluctuation and receiving and defaulting.

Yang Li, general manager of the Chao Ge Textile Group, said that after the listing of cotton futures, enterprises mainly used futures market to carry out production cost management, and reduced the cost of production through the hedging operation of the purchased cotton in the futures market.

However, some

People told futures Daily reporters that hedging alone on cotton futures is far from enough, because the risk of production and operation can not be completely circumvented, especially the price of cotton yarn produced by textile enterprises is fluctuating. At the same time, in the process of falling prices, there is a great possibility that the downstream enterprises of cotton yarn will not accept goods and break contracts. Textile enterprises are eager to list cotton futures and provide risk management tools for them.

"With cotton yarn futures, textile enterprises can buy Cotton Futures and sell cotton futures. Two kinds of two-way operation can revitalize the resources of enterprises, and the greater advantage is that the cotton yarn sold on the cotton futures market will not default risk, so long as the quality meets the requirements, it can be delivered."

Yang Liwei said.

Yang Liwei believes that the cotton yarn futures has its particularity and is suitable for the delivery of the plant.

At the same time, if the future futures contract allows imported cotton yarn to be delivered, it can also attract the processing of raw materials.

Processing enterprises actively participate in futures trading.

"After listing, if we arouse the activity of cotton and cotton yarn and let futures cover a wider textile industry chain, it will play a very important role in the healthy development of the entire textile industry."