Study On The Impact Of Cotton Price Discovery Function To The Production Of Cotton In Xinjiang

As agricultural commodities for people’s livelihood, cotton futures listed in China provides strong guarantee and support for the healthy development of the cotton industry. Practice In the last years has proved that cotton futures succeeding in China plays a positive role in supporting cotton industry development, protecting our cotton security, promoting agricultural commodities planting structure adjustment,security "order agriculture" development, promoting the increase in farmers’ income, for the right of international strive for China. But cotton futures price fluctuations is not conducive to the cotton futures hedging function in cotton enterprise and go against cotton farmers using cotton futures price discovery function arrangement the production and business operation activities, reduce the blindness of production. As the country’s largest cotton production base in Xinjiang, Cotton futures market price fluctuations affects its function in Xinjiang cotton industry in the certain degree, and also affects the solutions of the agriculture problem and the farmers’ income in Xinjiang.Based on the above reasons, this paper confirmed the clear objectives, collected research material in the domestic and abroad, and summarized cotton futures price discovery and Xinjiang cotton production. This paper is to test the price discovery function to cotton futures market to test t to paper Xinjiang cotton cash market, and whether it has the effect on Xinjiang cotton production. The conclusion is that cotton futures market does have price discovery function to Xinjiang cotton cash market, but this function has no to affect on Xinjiang cotton production. On this basis, the paper analyses that the government, the overall quality of the cotton farmers factors, the information are the main restricting factors in Xinjiang cotton production. This paper puts forward countermeasures that the transformation of government function, increasing futures propaganda, development cooperation economic organization, establishing information transmission of cotton farmers market,so as to promote the cotton futures price discovery function in Xinjiang cotton production, and achieve the purpose of the research.