Because cotton has good thermal properties, it plays a pivotal role in the textile industry. In addition, there are many cosmetics that also use cotton as a raw material. So, what is cotton, and what other agricultural products are there besides cotton?
OneWhat is cotton**
Cotton is also an old variety, traded as CF, listed on the Zhengzhou Commodity Exchange on October 28, 2004. **The contract is shown in the figure below
Zhengzhou Commodity Exchange.
As can be seen from Figure 1, the trading unit is 5 tons of lots, and the minimum price change is 5 yuan tons, so the cotton ** change is 25 yuan.
Cotton** IICotton ** upstream and downstream industries
The upstream industry of cotton, like many agricultural products, is mainly plantation. The main costs of planting or agriculture are, land costs, plastic film costs, fertilizer costs and mechanical operation costs. Due to the high degree of mechanization of the cotton industry. As a result, machinery costs account for about 47% of the total cost. In the cost of agricultural materials, the cost of fertilizer is an important influencing factor, and the cost accounts for about 40% of the total cost of agricultural materials.
The midstream industry of cotton can be divided into various rough processing enterprises and finishing enterprises, such as cotton rough processing, which can be madeCotton cloth, Chinese herbal medicineWait. Finishing can be doneTextiles, cosmeticsWait. And the hemp stalk of cotton can also be made in the case of finishingfurniture and paperof raw materials.
The downstream is a complete extension of the consumer side of the midstream industry chain, especially through the currently popular live broadcast platforms or online shopping platforms. are already quite large-scale. As a result, a more diversified online and offline marketing network has been achieved, covering more product lines. Let consumers have more diversified choices.
Introduction to PTA** How to open an account with PTA.
IIICotton ** margin calculation
The margin calculation of Shanghai nickel is consistent with the margin calculation of other varieties, and the formula is:
Number of open lots Units** Trading Units Margin Ratio
Example: If the customer opens a position in a lot of cotton 2405** contract on February 28, 2024, and it is known that the contract unit of cotton 2405** is 16080 yuan, and the trading unit is 5 tons, assuming that the margin ratio is 12%, then the opening of one lot needs to be paid.
1 lot 16080 tons lot 5 tons lot 12% = 9648 yuan.
FourthList of other agricultural products** margins
In addition to cotton, the Shanghai ** Exchange, Zhengzhou Commodity Exchange and Dalian Commodity Exchange also listed a number of agricultural products**, the margin of these agricultural products ** is shown in the figure below:
Data, **China Securities Construction Investment**, self-made.
Data, **China Securities Construction Investment**, self-made.
Data, **China Securities Construction Investment**, self-made.
References
1] Zhengzhou Commodity Exchange Cotton Department ** Investment Education Materials.
2] China Securities Construction Investment** Looking at the Ridge as a Peak-Sorting Out the Contradictions and Differences in the Cotton Market 2023-06-07
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China Securities Construction Investment**GuangzhouBranchesTips: The data information in this article is an example of the relevant varieties as of the time of publication of the article, and is for reference only, and the actual charging standard is subject to the regulations of the company. The content of this article does not constitute any recommendation or trading advice to traders, traders are advised to fully understand the trading risks and evaluate their own risk tolerance before participating cautiously. The futures market is riskyEnter the marketCaution is required
The content of this article is only the introduction and sharing of trading-related knowledge, and does not constitute any recommendation and trading advice to traders. The futures market is riskyEnter the marketCaution is required