ZCE cotton yarn futures completes the first delivery under the new rules

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 ZCE, 2 of the 33 standard warehouse receipts delivered this time are warehouse receipts, which marks the completion of the first warehouse delivery of cotton yarn futures, becoming another textile product that has achieved warehouse delivery after cotton. Industry variety.　　According to a reporter from the Futures Daily, one of the parties involved in the delivery of the warehouse is the wholly-owned subsidiary of the world's top 500 company, Wusan Zhongda Yunshang Co., Ltd. (hereinafter referred to as Wusan Zhongda Yunshang). 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. (hereinafter referred to as Weishi Textile), as one of the cotton yarn futures delivery factories, also participated in the delivery of the CY2001 contract, and used the futures market to manage risks during the epidemic. At the beginning of the year, the epidemic broke out and the cotton spinning market situation was not optimistic. Weishi Textile decided to deliver all 100 handfuls of cotton yarn holdings. 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.　　 According to reports, during the Sino-US trade talks in May 2019, Weishi Textile judged that the price of cotton textiles would fluctuate sharply based on the analysis of downstream orders, inventory of spinning mills and other factors. 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 in the CY2001 contract, with an average selling price of 20835 yuan/ton. The price of cotton and cotton yarn fell sharply in the later period. Due to the profit locked in the disk ahead of time, the profit of the futures market effectively made up for the loss of Weishi Textile’s spot sales during the sharp decline in the spot price, and a total of more than 600,000 yuan was recovered. Among them, the purchase of cotton , The cross-variety arbitrage model of selling cotton yarn made a profit of 75,600 yuan. 'Since the cotton yarn futures went public, Weishi Textile has participated in three deliveries, from the initial tens or more than 100 tons to the 500 tons of the CY2001 contract. The income has also increased from the initial participation of tens of thousands to hundreds of thousands of yuan to this time. More than one million yuan. This delivery is a breakthrough for Weishi Textile in terms of futures trading volume and income, and has accumulated experience for better use of cotton yarn futures in production and operation and risk management in the future.' Textile Chairman Li Youyin said that cotton yarn futures, as the most direct hedging product, can play a role in cotton yarn production and operation enterprises in dealing with large fluctuations in the market, which cannot be replaced by other tools, and the price of cotton yarn is highly correlated, and both upstream and downstream. Variety considerations can serve industry customers very well. As the market matures, it will also play a role as a vane in terms of market direction and industry pricing. It is understood that in order to promote cotton yarn futures to better exert their market functions, on March 4, 2019, ZCE officially released the 'Cotton Yarn Futures Relevant Business Rules Amendments' to optimize the cotton yarn futures benchmark delivery products and substitute quality index systems, and use warehouses The delivery method provides an institutional basis for active cotton yarn futures.　　 From May 15, 2019, Cotton Yarn Futures began to carry out the market maker real offer trials to provide initial liquidity for cotton yarn futures trading. With the formal implementation of new contract rules and the market maker system, cotton yarn futures transactions 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, with a cumulative delivery volume of 216 lots (1080 tons). Article Keywords: 　Zheng Commodity Exchange Cotton Yarn Futures