With the joint efforts of Hunan Cotton and Hemp Corporation and Sun Futures Co., Ltd., Zhengzhou Commodity Exchange set up a delivery warehouse in Hunan. According to Bao, chief accountant of Hunan Cotton and Hemp Company, this is the national cotton delivery warehouseNo. 14 where Zheng Jiao is located, with a maximum storage capacity of 25,000 tons. Previously, the location of the cotton delivery warehouse of Zhengzhou Commodity Exchange did not cross the Yangtze River, but the establishment of the warehouse in Hunan Province will accelerate the transformation of Hunan's cotton resource advantage into economic advantage, and comprehensively straighten out the relationship between Hunan's cotton acquisition, production and sales.
Hunan is one of the eight major cotton-producing provinces in China, with an annual planting area of about 2.2 million mu and a basically stable output of about 200,000-230,000 tons. The neighboring provinces such as Jiangxi, Sichuan and Zhejiang are about 40,000-50,000 tons. The establishment of listed cotton futures and Hunan cotton futures delivery warehouse is not only of far-reaching significance to Hunan's economic development, but also can radiate neighboring provinces. The cotton futures market will provide a place for cotton producers, processors, operators and consumers to find prices and avoid risks. The establishment of cotton futures delivery warehouse in Hunan will provide convenient conditions for enterprises to participate in cotton futures hedging and greatly reduce delivery costs. At the same time, textile production enterprises can also use the futures market to obtain stable and reliable purchase channels, which is conducive to broadening the business channels of cotton and linen enterprises and enhancing the overall strength of cotton and cotton textile industry.