In The Critical Period Of Cotton Growth, China Cotton Group Went To Xinjiang To Carry Out Risk Management Training For Cotton Industry.

In May 26th, the cotton industrial base of Zhengshang, China Cotton Group Co., Ltd. (hereinafter referred to as "China cotton group") entered the Bachu area of Xinjiang to carry out cotton futures business knowledge training and cotton planting technology support.

From Bachu County agricultural and rural Bureau, market supervision and Management Bureau, one cotton textile Co., Ltd. and other units, representatives from Bachu County fine seed ginning factory, Shache cotton industry, Bachu crown farmers cotton mill and other representatives of cotton growers attended the meeting.

4~6 per month is the critical period for cotton growth in Xinjiang. Bachu County, located in the southern part of Kashi, is the main cotton producing area in China. Cotton is a pillar industry in Bachu county. In 2019, its cotton planting area was 970 thousand mu, with an annual output of about 160 thousand tons of lint, involving about 35 thousand farmers. There were 27 cotton ginning plants and 74 cotton ginning lines in the county.

China cotton group is the largest cotton industrialization group in China. It implements the global layout and the whole industrial chain operation. It controls the quality of cotton resources more than 1 million tons each year and plays a role in stabilizing the cotton market in China. Its branches and subsidiaries all over the country's major cotton producing areas and Guangdong, Fujian, Shandong, Henan, Hubei and other important textile provinces, and has high quality cotton resources base in Xinjiang and Australia, Brazil, India and the United States.

In 2018, the cotton business volume of China cotton group was 1 million 200 thousand tons, with sales revenue of nearly 20 billion yuan. According to its development plan, it is estimated that by 2025, China cotton group can achieve annual sales income of 50 billion yuan, and the annual cotton business volume is expected to reach 3 million 500 thousand tons.

China cotton group's agricultural activities in southern Xinjiang are divided into two parts: on-the-spot training and field inspection. The on-site training will analyze the impact of the epidemic on the garment industry downstream of the textile industry chain, explain the operation mode of the cotton futures and derivatives market, focus on the cotton futures trading and delivery process and points for attention, and guide spot operators to make good risk management in the futures market.

"With the expansion of the scale, the China cotton group must serve the cotton farmers and textile enterprises, as well as ensure its healthy operation, and the importance of market operation risk prevention and control is also gradually highlighted," said the responsible person in the China cotton group. In combination with the seasonal and rhythmic factors of cotton purchasing processing and operation, China cotton group, in line with the business strategy of "margin purchase, margin adjustment, margin adjustment, open selling, selling at the base price, and purchasing at the base price", achieves the organic combination of the acquisition and processing of first-hand resources and the operation, sale and purchase through the fine hedging operation, so as to achieve "profitable". It is expected that the scale will grow and the risk will be controlled ", so as to lay an effective risk prevention and control measure for the sustainable development of China cotton group.

It is understood that in the process of cotton purchasing and processing, China cotton group requires that the cotton mill in the poverty-stricken areas of Southern Xinjiang be the focus of the cotton purchase and processing process, and actively publicize futures prices for cotton farmers, so that cotton farmers can have price references in the process of selling cotton seeds, sell cotton seeds on the market, avoid the sharp decline in cotton seed prices, reduce income, and help cotton farmers avoid irrational psychology. Unnecessary losses will help cotton farmers stabilize their incomes.

"Industrial base" is an important starting point for Zheng's service to the real economy. The "industrial base" plays a bridge role between the futures market and the real industry, playing a leading role in the demonstration. On the basis of the 2020 "industrial base" propaganda and exchange meeting held by Zheng Shang, 55 units became the industrial base of Zhengshang, and China cotton group became the signing unit of cotton industry base for two consecutive years.