Research On The Operations And Management Of Cotton Futures Trading In Xinjiang

Futures trading is the product of a market economy that develps to a certain stage. It is also a means of price risk aversion. Futures trading have two functions --Hedging and price discovery. These two functions can play a important role in guiding correctly the market prices and avoiding the price risk. Cotton futures have been successfully operated in the United States, Japan and Zhengzhou.The successful operation of the Cotton futures has proved a positive role of the implementation. of the cotton futures trading for cotton farmers and cotton-related enterprises on the cotton production and operations.In recent years, cotton futures has been welcomed by Xinjiang cotton farmers and cotton companies. On the one hand ,cotton futures may lead the majority of Xinjiang's cotton farmers ,to change crop structure,to adjust the cotton acreage,to reduce produced blindness,to avoid sharp fluctuations in production or prices adverse effects, and to ensure the stability of their income . On the other hand , cotton futures can make cotton-related enterprises predict the price of cotton . They can formulate a correct strategy for the production and operation according to their operations and avoid the risk from the lower price or the higher price.However, due to lag of the research on cotton futures trading in Xinjiang, cotton farmers and cotton-related enterprises can not successfully operate the cotton futures in the current. Therefore, the research on the operation and management of cotton futures trading should be strengthened in Xinjiang,this is crucial to increase cotton farmers income , to ensure the profitability of the cotton-related enterprises and promote the development of Xinjiang's cotton industry .This paper studies the following aspects. First of all,through the comprehensive research on cotton farmers and cotton-related enterprises in the northern and southern corps in Xinjiang and the inspection of relevant information and Statistical Yearbook, on the one hand this article analyzes the status of Xinjiang's cotton industry ,on the other hand ,this article clarifies the problem of Xinjiang's cotton futures trading and the importance of cotton futures on the cotton farmers and cotton-related enterprises.Secondly,this paper analyzes investment opportunities of the cotton futures in Xinjiang in the use of the fundamental analysis method; . Thirdly, this paper analyzes the operation of the function of cotton futures in combination with corps'cotton-related enterprises and designs a suitable mode of operation of the cotton futures for Xinjiang.Last but not least,this paper puts forward the countermeasures and suggestions on cotton futures trading in Xinjiang in order to lay the foundation for the development the cotton futures trading in Xinjiang..