Autumn is high and the air is crisp, the sleeves are long and comfortable. We share the same boat and talk about cotton rights.
The "2018 Cotton Options Risk Management Forum," hosted by Yong'an Futures, co-organized by Tongzhou Cotton, and specially supported by Zhengzhou Commodity Exchange, was successfully held at the Zhengzhou Mercure Hotel on August 15th. Our chairman, Wei Gangmin, delivered a welcome speech and expressed sincere gratitude for everyone's long-standing care, support, and affection for Tongzhou. The forum focused on the current macroeconomic environment for bulk commodities, cotton option contract rules, differences in the delivery rules for US and Chinese cotton futures, and how cotton companies can use options for risk management. Over 200 representatives from cotton-related companies across the country participated in the forum.
Wang Peng, director of the Macro-Financial Department of Yong'an Futures Research Institute, elaborated on the asset allocation strategy from a macro perspective, arguing that changes in currency are one of the core factors affecting the price changes of major asset classes in 2018, and credit is the core influencing factor of bulk commodity prices. When credit is relatively loose, even if the currency is tight, bulk commodity prices are likely to remain high and volatile; when credit is tight, the currency cannot provide sufficient support for bulk commodity prices. He suggested that the bond market should pay attention to opportunities to narrow the spread; the stock market may have a period of enduring hardship; and the foreign exchange market should focus on the central bank's regulation based on a bottom-line thinking.
Li Yapeng, senior manager of the Futures Derivatives Department of Zhengzhou Commodity Exchange, mainly introduced the significance of listed cotton options and basic knowledge of options, and gave a detailed explanation of cotton option contracts and trading rules.
Zhao Nana, general manager of our company's Investment and Research and Development Department, delivered a special report titled "Comparison of Trading and Delivery Rules between Zhengzhou Cotton Futures and ICE Cotton Futures." The report focused on a detailed explanation of the trading and delivery rules of domestic and international cotton futures markets, and conducted an in-depth analysis of the differences between the two markets, trading strategies, and the points of attention and precautions for enterprises in actual operations.
Hu Sihui, product director of Yong'an Capital Derivatives Department, conducted an in-depth analysis from the perspective of option trading strategies, combining practical cases, on how cotton textile enterprises can use derivative instruments to manage price fluctuation risks, and gave a detailed explanation of how to better promote the transformation and upgrading of business models.
This forum featured rich content, insightful and exciting presentations by the speakers, and plenty of valuable information, receiving unanimous praise from the attendees.
Leaders from Xiamen C&D Group visited Tongzhou for investigation and guidance
On March 3, Wang Yongqing, Vice President of Xiamen CNOOC Group, visited Tongzhou Group for investigation and guidance. Wei Gangmin, Chairman of our company; Huang Hongyu, President; Li Tao, Vice President; and Zhang Zhiyan, Director of the General Office, met with and participated in a symposium.
Tongzhou Cotton Market Brief, Week 1 of March 2025
1) This week's National People's Congress and the Chinese People's Political Consultative Conference (NPC & CPPCC) in China boosted market expectations for steady growth. In February, the Purchasing Managers' Index (PMI) for manufacturing stood at 50.2%, up 1.1 percentage points from the previous month, indicating a significant improvement in the manufacturing sector.
In 2024, China's dyeing industry saw rapid export growth to ASEAN and RCEP member countries, exceeding the overall export growth rate. However, this growth was accompanied by a decline in prices. From January to December, China's exports of eight major dyeing products to ASEAN totaled 7.908 billion meters, a year-on-year increase of 12.14%, 4.61 percentage points higher than the overall export growth rate, accounting for 23.58% of total exports. The average export price was US\$1.19 per meter, a year-on-year decrease of 2.75%, 0.64 percentage points lower than the overall decline. Exports to RCEP member countries totaled 8.431 billion meters, a year-on-year increase of 11.35%, 3.82 percentage points higher than the overall export growth rate. The average export price was US\$1.17 per meter, a year-on-year decrease of 2.79%, 0.60 percentage points lower than the overall decline.
On February 28, Mr. Huang Hongyu, President of our company, was invited to attend the 2025 Zhangjiagang Cotton Industry Development Conference and, as a guest speaker at the "Xiangshan Roundtable," shared his views on the cotton market and trading opportunities.
Henan Tongzhou Cotton Industry Co., Ltd.
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Henan Tongzhou Cotton Industry Co., Ltd.
Address: 10th Floor, Henan Nongxin Building, No. 19 Commercial Outer Ring Road, Zhengdong New District,Zhengzhou, China
Tel：86037165836206
Email：tongzhou@tongzhoucotton.com
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