ZCE Cotton
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ZCE cotton futures trade on the Zhengzhou Commodity Exchange (ZCE). They were launched on June 1, 2004[1].
Today, China is the world’s top cotton producer[2] as well as consumer[3].
Each ZCE cotton futures contract represents 5 tons of deliverable Grade 328B saw ginned upland cotton, which is defined in accordance with National Standard GB1103-1999, while substitutions at differentials that meet ZCE delivery rules are also good for delivery, and its delivery date is set as the twelfth trading day of the contract month[4].
Effective April 30, 2008 (the official website has not been updated yet), each ZCE cotton futures contract is subject to a margin rate equivalent to 6 percent of contract value, up from the previous 5 percent (e.g., 4273.5 yuan = 14245 yuan [CF807 last price on May 22, 2008] x 5 [tons/contract] x 6 percent) as well as a trading fee of 8 yuan (RMB) / contract.
ZCE cotton futures traded 5,886,502 contracts in 2007 (+41.91 percent YOY) and its turnover amounted to 433.9 billion yuan (+41.58 percent YOY). In the first four months of 2008, trading volume of ZCE cotton futures contract set two new highs, with 355,556 contracts traded most recently on March 5, 2008[5].
| ZCE Cotton No.1 futures | ||
|---|---|---|
| Exchange | Zhengzhou Commodity Exchange | |
| Settlement | Physically delivered | |
| Trade Unit | 5 tons / lot | |
| Point Value | 5 yuan (RMB) | |
| Tick Value | 5 yuan (RMB) | |
| Contract Months | Jan, Mar, May, Jul, Sep, and Nov | |
| Last Trading Day | The tenth business day of the delivery month | |
| Note: This contract is electronic ONLY -- no open outcry | ||
| No Open Outcry | No Electronic Market | |
| Trading Hours | N/A | 9:00-11:30 a.m. 1:30-3:00 p.m. |
| Ticker Symbol | N/A | CF |
| Price Limits | N/A | 4% above or below the previous trading day's settlement price |
References
- ↑ History of ZCE. Zhengzhou Commodity Exchange. Retrieved on May 22, 2008.
- ↑ Cotton Market Weekly January 11, 2008. Plains Cotton Cooperative Association. Retrieved on June 25, 2008.
- ↑ U.S. is expected to lose WTO fight on cotton subsidies. International Herald Tribune. Retrieved on June 25, 2008.
- ↑ Cotton No.1 Futures Contract Specs. Zhengzhou Commodity Exchange. Retrieved on May 22, 2008.
- ↑ The Trading Volume of Cotton Contracts on ZCE Hit a New High. Zhengzhou Commodity Exchange. Retrieved on May 22, 2008.
