CY2001 contract delivered 132 lots and 660 tons, cotton yarn futures completed the first delivery under the new regulations

Recently, ZCE Cotton Yarn Futures successfully completed the first delivery after the revised rules. In this CY2001 contract, a total of 132 lots were delivered, equivalent to 660 tons of cotton yarn. According to the relevant person in charge of the Zhengzhou Commercial Exchange, two of the 33 standard warrants delivered this time are warehouse receipts, which marks the completion of the first warehouse delivery of cotton yarn futures, and has become another cotton spinning company that has achieved warehouse delivery after cotton. Industry chain futures varieties.　　One of the parties involved in the delivery of the warehouse is the wholly-owned subsidiary of the world's top 500 company, Wuchan Zhongda Group-Wuchan Zhongda Yunshang Co., Ltd. Zhongda Yunshang is mainly engaged in textile raw materials, with the goal of deepening and fine-tuning the textile sector, using its own future business advantages, and in-depth cooperation with textile mills, selling 180 tons of cotton yarn at a price of 20,650 yuan/ton. , 140 tons were liquidated at 19,400 yuan/ton, and the remaining 40 tons entered the delivery link. The company produced the first cotton yarn futures standard warehouse receipts for Hubei Xiaomian Industrial Group Co., Ltd. and Xinjiang Ruyi Textile u0026 Garment Co., Ltd., and successfully completed the process of various business links including warehousing, registration of warehouse receipts, delivery, and delivery. Weishi Textile Co., Ltd. is located in Weishi County, Henan Province. It mainly produces pure cotton and blended yarns and threads. It has 200,000 spindles and 3,000 rotor spinning. The annual production capacity of cotton yarn is 25,000 tons. The products cover combed and blended yarns. Compact spinning of high-grade cotton yarn, high-end spinning of 20 to 40 counts of cotton yarn, open-end spinning of 10 to 16 counts of cotton yarn, etc. The company has also established a solid raw material supply base in Xinjiang, has two cotton processing plants, and has formed a complete industrial chain enterprise of cotton planting, purchasing, processing, spinning, and foreign trade export.　　 As one of the delivery factories for cotton yarn futures, Weishi Textile also participated in the delivery of the CY2001 contract and used the futures market to manage risks during the epidemic. At the beginning of this year, my country suffered a sudden outbreak of new crown pneumonia. Facing the unoptimistic situation of the cotton textile market, Weishi Textile decided to deliver all 100 handfuls of cotton yarn positions. Based on the previous two delivery experiences, Weishi Textile registered a warehouse receipt efficiently, and the final settlement price was 19730 yuan/ton, and the hedging profit was about 1 million yuan.　　 The reporter also learned that during the Sino-US trade talks in May 2019, Weishi Textile predicted that the price of cotton textiles would fluctuate greatly based on the analysis of downstream orders and inventory of spinning mills. In order to deal with the risk of price fluctuations caused by various uncertain factors in the market, Weishi Textile decided to use cotton yarn futures to sell hedging. From May to December 2019, Weishi Textile successively sold 1,055 lots of cotton yarn futures in the CY2001 contract, with an average selling price of 20835 yuan/ton. In the later period, the prices of cotton and cotton yarn fell sharply. Because the profits were locked in the disk ahead of time, the profits in the futures market effectively made up for the loss of Weishi Textile's spot sales during the process of the sharp drop in spot prices, and a total of more than 600,000 yuan was recovered. Among them, through the cross-variety arbitrage model of buying cotton and selling cotton yarn, Weishi Textile realized a profit of 75,600 yuan. Weishi Textile Chairman Li Youyin introduced: 'Since the cotton yarn futures were listed, Weishi Textile has participated in 3 delivery times, from the initial dozens of tons and more than 100 tons to 500 tons in the CY2001 contract. , Also increased from the initial tens of thousands of yuan, hundreds of thousands of yuan to more than 1 million yuan this time. This delivery is a breakthrough for Weishi Textile in terms of futures trading volume and revenue. We have accumulated experience in making better use of the tool of cotton yarn futures in production, operation and risk management.” Li Youyin also said that cotton yarn futures, as the most direct hedging variety, play a role in cotton yarn production and operation enterprises in responding to large fluctuations in the market. It cannot be replaced by other varieties, and the prices of cotton and cotton yarn are highly correlated. Both upstream and downstream varieties can serve industry customers well. As the market matures, it will also play a role in market direction and industry pricing. The role of 'weather vane'. It is understood that in order to promote cotton yarn futures to better exert their market functions, on March 4, 2019, ZCE officially issued the 'Cotton Yarn Futures Relevant Business Rules Amendments' to optimize the cotton yarn futures benchmark delivery products and alternative quality index systems. The use of warehouse delivery method provides an institutional basis for realizing the active cotton yarn futures.　　Since May 15, 2019, Cotton Yarn Futures has begun to carry out a market-maker firm trial to provide initial liquidity for cotton yarn futures trading. The data shows that with the formal implementation of new contract rules and market maker system, cotton yarn futures trading volume and open interest have gradually increased, achieving initial activity. As of the beginning of April this year, the average daily trading volume and open interest of cotton yarn futures reached 8816 lots and 7874 lots (unilateral, the same below), which increased by 97% and 607% respectively compared with before the rule revision, and the overall turnover rate reached 1.1. From the perspective of delivery, cotton yarn futures has produced 4 deliveries since its listing, namely CY1801, CY1810, CY1901, and CY2001. The cumulative delivery volume is 216 lots, or 1,080 tons. Article Keywords: 　 Cotton Yarn Futures