At the beginning of August, the National Development and Reform Commission held a meeting to clarify the new year's cotton purchase and storage policy, that is, since September 1st, a new cotton purchase will be opened at a fixed price of 19,800 yuan/ton. RMB 19,800/t, known as the “policy endâ€, was jointly announced by the National Development and Reform Commission, the Ministry of Finance, the Ministry of Agriculture, the Ministry of Industry and Information Technology, the Ministry of Railways, the General Administration of Quality Supervision, Inspection and Quarantine, and the China Agricultural Development Bank at the end of March 2011. The national cotton collection and storage price set in the annual cotton temporary storage and storage plan.
On August 8, China Chumian Cotton Corporation held a meeting in Xi'an, Shaanxi Province to implement the implementation of the “2011 Cotton Temporary Collection and Storage Planâ€. Yao Ming, general manager of the company said: "Full mobilization, make preparations for the temporary storage plan!"
Yao Mingjiu said at the meeting: “The temporary storage and storage plan is of great significance to the storage enterprises, to the cotton industry in China, and to the development of the national economy. The “preplan†stabilizes the cotton planting area, protects the interests of cotton farmers, and ensures the benefits of cotton planting. At the same time, the parties to the cotton industry chain will be expected to ensure the orderly operation of the market. The implementation of the cotton temporary storage and storage plan is in full swing.†Yao Mingqiu stressed that the temporary purchase and storage plan is a milestone in China’s cotton circulation system reform. We must regard the completion of the country’s temporary collection and storage as a political task and must stand up to the tests of the state and social inspections. Regardless of the difficulties faced by the company, China National Cotton Corporation must spare no effort to ensure a good start in the plan for the purchase and storage.
From the beginning of 2010 to August 2011, the unpredictable price of cotton almost made everyone involved in the cotton trade dreamless. From RMB 15,000 per ton to RMB 34,000, it fell to the current RMB 19,000 “roller coaster†market. Let the cotton-related companies have no hope of "car" heartbeat. What is the impact of the upcoming 19800 yuan/ton purchase price on the cotton market? The reporter has repeatedly called the person in charge of the relevant department of the National Development and Reform Commission. Regrettably, policymakers have always remained silent.
According to analysis by industry insiders, the main reason for the increase in cotton prices last year was a large area of ​​global cotton production cuts and domestic cotton crop failures. The reason why cotton was cut sharply since March of this year is also based on the industry’s expectation that China’s cotton will be harvested this year. According to surveys, most of China's cotton grows well in this year's region, and the cotton-producing provinces of Shandong, Hubei, and Henan, especially Xinjiang, have already reached a foregone conclusion.
According to Li Hui, general manager of the sales department of Urumqi, Wanda ** Co., Ltd., 19,800 yuan/ton should be the bottom of the policy. When the relevant state departments set the purchase and storage price in the spring, it played a key role in stabilizing the cotton planting area this year. When they investigated in rural areas, farmers were very concerned about the country's policies. The trust of the State Reserve Trustee at the end of 19,800 yuan/ton was far higher than the current market price of more than 30,000 yuan/ton. The annual cotton price of 2010/2011 cotton also rose precisely at the price of 18,000 yuan/ton to 19,000 yuan/ton. Therefore, compared with the price of around 30,000 yuan / ton, 18,000 yuan / ton to 19,000 yuan / ton is more rational. As far as the Xinjiang region is concerned, this year’s cotton harvest is basically a foregone conclusion. On the whole, the yield increased by more than 20% over the previous year.
For the 19800 yuan/ton national reserve price to be launched on September 1, Li Hui believes that under the condition that the policy price is high and the market price is low, the overall price elasticity of the cotton market will be greatly reduced, around 19,800 yuan/ton. At this point, the spot price will remain around 1,000 yuan during the acquisition period of the new flower.
In the face of fluctuating cotton prices, industry experts recommend that cotton textile companies pay close attention to the trend of domestic cotton and cotton production trends. In order to prevent raw material cost risks, a certain amount of cotton ** hedging or hedging, research volume is not necessarily research The key is to match with your own production, do a good job of hedging, and control your position.
Although the current trend of falling cotton prices, it means that corporate production costs are declining. However, taking into account the need for companies to avoid operating risks, some experts have suggested that cotton spinning enterprises with production orders next year should participate in hedging. As the current market trend is continuously declining, companies can properly reduce their efforts to preserve value, and buy hedges according to 10% of the production scale, that is, 10% of the cotton needed for production will be sold in the market. Buy hedging, and then take multi-polar price target strategy to operate, and then follow the market development trend and flexibility. Experts also emphasized that hedging is a necessary tool for business management and control. It is not only a high-tech weapon for companies to manage risks, but also a double-edged sword. Using them badly may cause major harm to the company. Hedging has strict principles of operation discipline and management and control. Enterprises should insist on not speculation, but not volume trading.
☆Related links Temporary collection and storage price is fixed for one year. The establishment of a minimum cotton price for storage is based on a reasonable price ratio of cotton and grain, while referring to cotton planter costs, market supply and demand, and international market prices. Taking into account the low level of mechanization of cotton cultivation, labor costs, labor costs in the past two years rose rapidly, in order to protect the enthusiasm of farmers to plant cotton, in 2011 the temporary collection and storage price in accordance with the cotton and wheat ratio of 10:1, the minimum purchase price in 2011 for wheat 94 yuan / dan, discount cotton purchase price of 940 yuan / dan, plus 1,000 yuan / ton processing costs, 2011 minimum cotton storage price of 19,800 yuan / ton (according to 1.8 yuan / kg of cottonseed, 38% of the clothing points Estimated, seed cotton purchase price is about 5 yuan / kg or so). At the same time, relevant state agencies have established a consultation mechanism, and each year before the end of March, we will study and formulate the minimum cotton price for the next year and implement the plan.
On August 8, China Chumian Cotton Corporation held a meeting in Xi'an, Shaanxi Province to implement the implementation of the “2011 Cotton Temporary Collection and Storage Planâ€. Yao Ming, general manager of the company said: "Full mobilization, make preparations for the temporary storage plan!"
Yao Mingjiu said at the meeting: “The temporary storage and storage plan is of great significance to the storage enterprises, to the cotton industry in China, and to the development of the national economy. The “preplan†stabilizes the cotton planting area, protects the interests of cotton farmers, and ensures the benefits of cotton planting. At the same time, the parties to the cotton industry chain will be expected to ensure the orderly operation of the market. The implementation of the cotton temporary storage and storage plan is in full swing.†Yao Mingqiu stressed that the temporary purchase and storage plan is a milestone in China’s cotton circulation system reform. We must regard the completion of the country’s temporary collection and storage as a political task and must stand up to the tests of the state and social inspections. Regardless of the difficulties faced by the company, China National Cotton Corporation must spare no effort to ensure a good start in the plan for the purchase and storage.
From the beginning of 2010 to August 2011, the unpredictable price of cotton almost made everyone involved in the cotton trade dreamless. From RMB 15,000 per ton to RMB 34,000, it fell to the current RMB 19,000 “roller coaster†market. Let the cotton-related companies have no hope of "car" heartbeat. What is the impact of the upcoming 19800 yuan/ton purchase price on the cotton market? The reporter has repeatedly called the person in charge of the relevant department of the National Development and Reform Commission. Regrettably, policymakers have always remained silent.
According to analysis by industry insiders, the main reason for the increase in cotton prices last year was a large area of ​​global cotton production cuts and domestic cotton crop failures. The reason why cotton was cut sharply since March of this year is also based on the industry’s expectation that China’s cotton will be harvested this year. According to surveys, most of China's cotton grows well in this year's region, and the cotton-producing provinces of Shandong, Hubei, and Henan, especially Xinjiang, have already reached a foregone conclusion.
According to Li Hui, general manager of the sales department of Urumqi, Wanda ** Co., Ltd., 19,800 yuan/ton should be the bottom of the policy. When the relevant state departments set the purchase and storage price in the spring, it played a key role in stabilizing the cotton planting area this year. When they investigated in rural areas, farmers were very concerned about the country's policies. The trust of the State Reserve Trustee at the end of 19,800 yuan/ton was far higher than the current market price of more than 30,000 yuan/ton. The annual cotton price of 2010/2011 cotton also rose precisely at the price of 18,000 yuan/ton to 19,000 yuan/ton. Therefore, compared with the price of around 30,000 yuan / ton, 18,000 yuan / ton to 19,000 yuan / ton is more rational. As far as the Xinjiang region is concerned, this year’s cotton harvest is basically a foregone conclusion. On the whole, the yield increased by more than 20% over the previous year.
For the 19800 yuan/ton national reserve price to be launched on September 1, Li Hui believes that under the condition that the policy price is high and the market price is low, the overall price elasticity of the cotton market will be greatly reduced, around 19,800 yuan/ton. At this point, the spot price will remain around 1,000 yuan during the acquisition period of the new flower.
In the face of fluctuating cotton prices, industry experts recommend that cotton textile companies pay close attention to the trend of domestic cotton and cotton production trends. In order to prevent raw material cost risks, a certain amount of cotton ** hedging or hedging, research volume is not necessarily research The key is to match with your own production, do a good job of hedging, and control your position.
Although the current trend of falling cotton prices, it means that corporate production costs are declining. However, taking into account the need for companies to avoid operating risks, some experts have suggested that cotton spinning enterprises with production orders next year should participate in hedging. As the current market trend is continuously declining, companies can properly reduce their efforts to preserve value, and buy hedges according to 10% of the production scale, that is, 10% of the cotton needed for production will be sold in the market. Buy hedging, and then take multi-polar price target strategy to operate, and then follow the market development trend and flexibility. Experts also emphasized that hedging is a necessary tool for business management and control. It is not only a high-tech weapon for companies to manage risks, but also a double-edged sword. Using them badly may cause major harm to the company. Hedging has strict principles of operation discipline and management and control. Enterprises should insist on not speculation, but not volume trading.
☆Related links Temporary collection and storage price is fixed for one year. The establishment of a minimum cotton price for storage is based on a reasonable price ratio of cotton and grain, while referring to cotton planter costs, market supply and demand, and international market prices. Taking into account the low level of mechanization of cotton cultivation, labor costs, labor costs in the past two years rose rapidly, in order to protect the enthusiasm of farmers to plant cotton, in 2011 the temporary collection and storage price in accordance with the cotton and wheat ratio of 10:1, the minimum purchase price in 2011 for wheat 94 yuan / dan, discount cotton purchase price of 940 yuan / dan, plus 1,000 yuan / ton processing costs, 2011 minimum cotton storage price of 19,800 yuan / ton (according to 1.8 yuan / kg of cottonseed, 38% of the clothing points Estimated, seed cotton purchase price is about 5 yuan / kg or so). At the same time, relevant state agencies have established a consultation mechanism, and each year before the end of March, we will study and formulate the minimum cotton price for the next year and implement the plan.
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