Study On Future Market And Spot Market' Development Of China's Cotton Industry

Cotton is one of important strategic resources related to national interest and people ?s livelihood,the importance of which is second only to grain.At now China is one of the largest cotton producing countries,cotton consuming countries and importing countries,which is of vital importance in the world cotton market.In the consisting evolvement and development of world economy,the future market plays an important role.With functions of price discovering and hedging risk,it optimizes the market economy system.In 1998,China carried out cotton circulation system reform.It has to completely open to the world after enrolled in WTO in 2001.It started first future trade in Zhengzhou Commodity Exchange in 2004.Through trading with hedging function in future market,it is beneficial to discover reasonable price,guarantee farmer's profits,anddevelopment of farm produce' circulation system.This paper first starts with related theories of future market and spot market,uses mature theories and methods domestic and aboard for reference,directly shows status quo and existing problems of future market and spot market of China cotton with data and charts.By analyzing international cotton market' influences to China cotton market and developing trend of China cotton market in next decade,it proposes some advices and methods to optimize cotton market.By effectively supervision,reasonable regulation and harmonized development,it will promote competence force of China cotton market,guarantee farmer and cotton-related enterprises' profit,and save more spaces for China in how international cotton market runs.