Cotton 30 Thousand &Nbsp; Are You Ready For The Business?

　　 Leisurely, lingering at the end of August at 18000. cotton At last it reached 30 thousand per tonne. How many bulls are rich, how many empty positions. In the autumn of this surging tide, we knew little about the futures market. Goods in stock and Textile enterprises How many foresight entrepreneurs have discovered and used futures to create profits for their companies?

As a financial market, futures market provides a high risk and high return market to investors. The main function of futures market is to provide a safe haven for business customers. Let me take a closer look at the benefits of cotton trading in the futures market.

Although cotton prices have risen sharply in the past month, cotton futures have been rising more than spot. On the day of soaring cotton prices, after the long holidays in October, according to the trend of futures contracts and spot prices, the base difference continued to weaken, that is, the spot rose from 22684 in September 30th to 27405, while futures 1011 contracts rose from 22615 to 30130, and the base fell from 69 to -2844. If the textile companies adopt the hedging policy and enter the market in September 30th to buy more value, they can easily purchase spot cotton in the market. At the same time, in the futures market, the actual cost per ton of cotton is still around 22615 of your opening. In addition, each ton can earn an additional profit of nearly 3000 yuan, which may be much higher than the expected profit of the manufacturing industry. If we do not adopt the strategy of buying and keeping value, we may not only have to bite the bullet to accept the cotton price rising, but also dare not accept the new order for the certainty of future cost.

In fact, for enterprises, the biggest advantage of futures market is the transfer of risk. In the face of rising cotton prices, many textile mills still face great operational pressure. If the cotton yarn is in such a good market, if you have a lot of low cost cotton in your hands, do you want to keep the boss laughing? You don't need to occupy a lot of capital and pay high warehouse costs, you can buy the contract in the futures market to complete the lockout cost. Regardless of the rise or fall of futures prices, theoretically, the cost of production will remain in a stable range. With the change of base, as the result of this month's market since October, there may even be excess returns.

In addition, the adoption of futures market will not only increase the cost of capital, but also reduce it. Taking 1000 tons of cotton per month as an example, the current inventory price is 27000, and the inventory needs 27 million. If we adopt 2/3 stocks and 1/3 market purchases, and hedge the 1/3 parts, we need 18 million of the stock fund, plus 3 million margin to carry out futures operation (we have considered raising the margin situation). When we need to buy the goods, we will go to the loan to buy cotton again. In this case, the total capital demand can be reduced by 6 million yuan, which will reduce the financial cost of enterprises. Of course, if the futures market has enough cotton warehouse receipts, it can even directly choose to deliver high-quality cotton on the futures market, because the relative futures market is more standardized and the quality is more assured.

Judging from the trend of cotton yarn prices and spot prices, according to our formula, the recent rise in cotton yarn is entirely a passive increase in cost push driven by the rise of cotton. In November 2nd, when the price of cotton yarn was raised by Wei Qiao, it could not make cotton yarn enterprises enjoy higher profits, but only alleviate the predicament of loss.

　　 A popular saying in the futures market is that every crisis will push forward the development of the futures market. I believe that in the market of cotton inflation, the business risks faced by enterprises will also enable more enterprises to participate in the value chain of the futures market, so that they can carry arms in the financial market in their hands, so that enterprises will not be unarmed in the turbulent market.