Cotton Futures Knowledge 
- Categories:Company News
- Time of issue:2011-07-20 12:30
Cotton Futures Knowledge 
11. What are the main reference prices in the cotton market?
Answer: There are (1) New York Futures Exchange (NYBOT) cotton futures prices. (2) CotlookA and CotlookB indexes compiled by Liverpool Cotton Outlook. (3) Spot quotes from seven major US markets. (4) Foreign cotton China's main port quotation. (5) CncottonA and CncottonB cotton price indexes of China Cotton. It is the domestic price monitoring system of China Cotton. It tracks and summarizes the actual transaction prices of 120 domestic cotton and cotton textile companies.(6) The CCIndex cotton index of China Cotton Information Network, which is based on the actual arrival price of cotton from more than 200 large and medium-sized textile companies across the country, and reflects the comprehensive average price of domestic 328-grade cotton to domestic textile companies three days before the release date Level. (5) Matching transaction price of cotton in the Chinese cotton trading market, which is the forward transaction price of cotton spot
12. What are the prices of the seven major US cotton spot markets?
Answer: The prices of the seven major US cotton spot markets: refer to the US Southeast Market, North Delta, South Delta, East Texas, West Texas, Southwest Market, and the San Jose Gold Basin market standard grade (equivalent to National Cotton 427 Grade) The delivery price of cotton from the origin. The Cotton Projects Division of the Agricultural Marketing Department of the United States Department of Agriculture is responsible for collecting and arranging the average quotations of seven markets every day, and the prices of the seven markets basically represent the spot price level of American cotton.
The US upland cotton standard grade refers to white cotton SLM1-1/16' (equivalent to national cotton grade 427), leaf shavings grade 4, micronaire value 3.5, 3.6-4.3, 4.9, strong 26.5-28.4 g/tex; The US cotton mid-grade refers to the white cotton M1-3/32' (equivalent to the national cotton 328 grade). Pima cotton in the seven markets mainly refers to grades 2 and 3, with lengths of 35 mm and 37 mm. The transaction volume is in packs, 480 pounds per pack.
13. What is the price quoted by the foreign cotton China main port?
Answer: The quotation of foreign cotton main port is the CNF reference quotation of the world's major cotton exporters, including cost and freight, excluding insurance; the duty-paid price includes customs duties, value-added tax and port fees. The quotation countries mainly include the United States, Australia, West Africa, Central Asia and other countries. The description of the outer cotton grade is as follows:
(1) Both US cotton and Australian cotton adopt the US cotton standard, which is the international general standard. SJV-Covenant Valley of the Western United States; CA-California and Arizona area; EMOT-Memphis and Texas area; Grade: GM- Level 1; SM-2 Level; M-level 3; SLM-level 4. Length: 1.1/16'-27 mm; 1.3/32'-28 mm; 1.1/8'-29 mm.
(2) Due to the different quality of West African, Central Asian and Brazilian cotton, they are generally sold according to the sample.
(3) Unit conversion: exchange rate 1 USD = 8.27 yuan, 13% value-added tax, 1% tariff, port fee 200 yuan, 1 ton = 2204.58 pounds.
14. What factors should be paid attention to when participating in Zhengzhou cotton futures trading?
Answer: (1) Cotton price trends at home and abroad. Mainly concerned about cotton futures prices on the New York Futures Exchange, CotlookA and CotlookB indexes, spot prices in the seven major US markets, foreign cotton prices in China's main ports, CncottonA, CncottonB cotton price index of China Cotton Network, CCIndex cotton index of China Cotton Information Network, Matching transaction prices of cotton in the Chinese cotton trading market.
(2) Global cotton supply and demand.Mainly include: cotton production in China and the United States and other major cotton producing countries. World cotton production is very unstable and has strong cycle changes. What needs to be emphasized here is the weather factor. Climate change has a great impact on cotton production ; China's cotton consumption, China It is a large cotton consumer, and its cotton consumption will fluctuate to a certain extent with the changes in China's textile exports and changes in the prices of alternatives such as chemical fiber; China's cotton imports, US cotton exports; changes in China and the world's cotton stocks, changes in stocks Reflect the tightness of cotton supply and demand; Economic cycle: With the deepening of economic globalization, the economic cycle of different countries has synchronized characteristics.At different stages of the economic cycle, cotton consumption is also different. During the recession period, global cotton The downward trend, while in the period of economic growth, cotton consumption has rebounded rapidly; industrial policy: China's industrial policy and other cotton agricultural subsidy policies and import and export policies of various countries have also become one of the uncertain factors of price fluctuations.s industrial policy and other cotton agricultural subsidy policies and import and export policies of various countries have also become one of the uncertain factors of price fluctuations.s industrial policy and other cotton agricultural subsidy policies and import and export policies of various countries have also become one of the uncertain factors of price fluctuations.
15. How to deal with the natural variation of cotton during storage?
Answer: The "Cotton Delivery Rules" stipulates that if natural variability of the cotton during storage leads to a decline in the cotton grade, the export procedures can still be processed normally, and investors must not refuse to accept the goods. The standard warehouse receipt holder shall bear the reduction of grades due to natural variation that does not exceed one grade. The designated delivery warehouse is responsible for the loss of grade difference between the grades with more than one grade. The calculation of the price difference is carried out according to the standard of premium and discount between grades specified by the exchange, and the price difference between grades lower than grade 4 is 800 yuan/ton. .
16. What is the delivery process of cotton futures?
Answer: Centralized delivery of cotton futures adopts the three-day delivery method:
(1) After the market closes on the last trading day (that is, the matching day), the corresponding part of the trading month held by the investor with the same trading code is automatically closed by the computer, and the closing price is calculated at the settlement price of the day. All other open contracts are treated as delivery contracts, which are matched by the computer according to the quantity and time priority.
(2) On the first trading day after the last trading day (that is, the notice day), both buyers and sellers go to the Exchange Clearing Department to sign the "Delivery Notice".
(3) Before 9 a.m. on the second trading day (the delivery day) after the last trading day, the buyer's member should transfer the outstanding payment to the exchange account, and the seller's member should submit the "standard warehouse receipt holding certificate" to the transaction Clearing Department. Buyers and sellers should go to the clearing department of the exchange for specific delivery and settlement procedures at the specified time. At the same time, the buyer's member shall provide the investor's name and tax registration certificate number to the seller's member.
On the delivery day, the Exchange collects the full payment from the buyer's member, and transfers 80% of the full payment to the seller's member on the same day. At the same time, the seller's warehouse receipt is delivered to the buyer's member. The remaining balance is settled when the buyer member confirms receipt of the special VAT invoice transmitted by the seller member. Members should seal and sign the delivery of invoices and the settlement of the balance.
75. How is the cotton delivery cost calculated?
Answer: It mainly includes the following fees:
Delivery fee 4 yuan/ton
Train transport small package 28 yuan/ton; large package 38 yuan/ton
15 yuan/ton for automobile transportation
Train transport small package 30 yuan/ton; large package 40 yuan/ton
15 yuan/ton for automobile transportation
Cooperate with the public inspection fee of 25 yuan / ton
Storage fee: 0.60 yuan/ton·day for the mainland warehouse
(Including insurance premium) Xinjiang warehouse 0.50 yuan/ton·day
17. How to convert cotton futures to cash?
Answer: The cotton futures contract can be cashed from the date of listing to the last trading day of the contract.
The transaction process is as follows:
(1) After the buyers and sellers holding the same delivery month contract have reached an agreement and filled out the "Futures to Spot Agreement Form" as required, they will go to the Exchange to go through the period transfer approval process before 14:00 on each trading day.
(2) After the exchange approves, the futures positions held by the buyers and sellers will be closed by the exchange after 15:00 on the approval date at the closing price agreed by the buyers and sellers. The closing price reached by the buyer and the seller shall be within the limits of the contract price on the date of approval.
(3) The standard warehouse receipt can be used for cash transfer, and the exchange can transfer the payment. If after the position held by the buyer and seller both closes the position and the standard warehouse receipt transfer procedure is completed, if the seller fails to deliver the standard warehouse receipt in full or the buyer fails to deliver the payment in full, the exchange will act on the basis of the delivery price agreed by the buyer and seller. 20% of the liquidated damages of the breaching part of the breaching party shall be paid to the breaching party.
(4) When performing spot cash transfers in accordance with the stipulated spot other than the standard warehouse receipt, the relevant spot sales agreement and legal proof of possession of the goods shall be provided.
(5) Carry out the cash transfer of goods other than the standard warehouse receipts. The delivery of goods and the transfer of goods are negotiated and determined by the seller and the buyer. The resulting disputes are resolved by themselves, and the Exchange will not be responsible for this.
18. How is the cotton futures trading margin collected? What is the minimum transaction margin?
Answer: The margin management of cotton futures trading is implemented in cascade management, which is divided into four levels, namely "general month" (the month before the two months before the delivery month), "two months before the delivery month", "one month before the delivery month", " Delivery month". The minimum trading margin for cotton futures is 7%.
19. What are the requirements for the margin of cotton futures trading in general months?
Answer: In general, the cotton futures contract adopts different trading margin ratios according to different positions. The specific regulations are as follows:
20. What are the requirements for the margin of cotton futures trading in the two months before the delivery month?
Answer: The cotton futures contracts in the two months before the delivery month and the month before the delivery month adopt different trading margin ratios according to the early, middle and late periods.
21. What are the requirements for cotton futures trading margin in the month before the delivery month?
The positions of broker members, non-broker members, and investors (including hedging and arbitrage positions) that reach the 15%, 10%, and 5% of unilateral positions in the market for the most recent delivery month, respectively, in the normal margin ratio Increase by 5 percentage points.
22. How is the margin for cotton futures trading in delivery months specified?
Answer: When entering the settlement of the trading day before the delivery month, the transaction margin of the contract of the delivery month is increased to 30%; when entering the closing settlement of the fifth trading day of the delivery month, the transaction margin of the delivery month is increased to 50%; For those who pay the transaction margin, the ownership of the transaction forcibly closes the position of the contract held in the delivery month until the margin can maintain the current position level.
Dongguan Huataiji Jacquard Ribbon Co., Ltd
contacts： Mr. Guo
Add：No.15, Hedong 1st Road, Jinxia Industrial Zone, Chang'an Town, Dongguan City, Guangdong Province