Cotton that meets the following standards in Zheng Mian futures trading: benchmark delivery product: 328B-grade domestic serrated fine wool white cotton (conforming to GB1103-1999) Delivery grade: conforming to the national standard of cotton (fine wool cotton) in People's Republic of China (PRC) (GB 165438) with the quality above grade 4. First, the cotton rolled by leather roller has high impurity content; Secondly, at present, except for long-staple cotton or leather roller processing, most fine-staple cotton is serrated processing. 1On July 2, 1999, the State Bureau of Quality and Technical Supervision issued a new national standard for cotton (fine cotton) (GB1103-1999), which came into effect on September 0, 1999. According to the new national standard, 328B is the standard grade of refined cotton, so the cotton futures contract is based on domestic 328B. What is the relationship between Zheng Mian futures and American cotton futures? Through the empirical analysis of cotton futures contracts in Zheng Mian and the United States, we can draw the following conclusions: First, from the ADF single root test, we can see that the changes of Zheng Mian futures prices and American cotton futures prices are non-stationary, but their first-order difference sequence is stable, but there is no long-term equilibrium relationship between the price changes of the two markets during the study period. Secondly, Granger causality test shows that the price change of cotton in the United States is the cause of the price change of Zheng Mian, while the price change of Zheng Mian is not. Considering the time difference between China and the United States, US cotton opens at night and closes during the day, so we can make full use of overnight price changes in the US cotton futures market to adjust investment strategies. The results of the annual raw cotton quality survey conducted by Cotton Professional Committee of Fiber Branch of China Standardization Association 1998/99 show that 78. 1% of raw cotton is above Grade III, and the average length of Grade III cotton is 28.58 mm. More than 77% of Grade V cotton has micronaire values of A and B, and the maturity of Grade III and above cotton is obviously better than Grade V, so the micronaire values of cotton are A and B. With the improvement of cotton planting technology and the introduction of new technologies and varieties in recent years, the overall quality of cotton in China has been continuously improved, especially in Xinjiang. At present, the proportion of high-quality cotton flowers in China's total output is much higher than in previous years. From the above analysis results, it can be seen that cotton with a length of more than 28 mm and a micronaire value of A and B can fully meet the demand of futures delivery. Nevertheless, four levels of cotton have been added to the delivery level to allow delivery: ① Drawing on the experience of the United States, the cotton inspection used for futures delivery is stricter than that in the spot market; ② new york Futures Exchange uses 427 cotton as the benchmark delivery variety, and five-grade cotton can be used for futures crossing; (3) Allow the delivery of Grade 4 cotton, so as to avoid the forced warehousing event in special years due to the decrease of the proportion of Grade 3 and above cotton and the decrease of the deliverable quantity. Therefore, the fourth-grade cotton is the "safety valve" for the delivery quantity. Cotton with a micronaire value of C below Grade 4 also has a certain yield and market share. However, in order to meet the needs of cotton planting structure adjustment, reflect the principle of high quality and good price, and enhance the certainty of products delivered in futures contracts, it is stipulated that cotton below grade 4 (excluding grade 4) and below 28 mm in length (excluding 28 mm) shall not be used for futures delivery.