In the current domestic market for cotton enterprises to worry about the case, Louis Dreyfus has a large number of multinational corporations such as the acquisition of domestic cotton, and in the futures market are making substantial gains, and their skilled marketing skills to make even more shocked by the domestic cotton.

“Wolf” or “teacher”? In the eyes of domestic cotton, transnational giants are playing a role in the end? Intervene in their domestic cotton industries may be what kind of impact?

Transnational giants “change of face” for Chinese enterprises to “make up a missed lesson”

In recent years, Guo Chanmian “difficulty in selling” are frequent in China, made of cotton qualified Louis Dreyfus, Yi Kamu cross-border trade of agricultural products, such as participation in domestic enterprises is not only cotton, cotton futures market also earned huge profits, and their Operation with the vast majority of domestic enterprises in sharp contrast to cotton.

At present, almost all cotton in China to carry out business in cross-border trade of agricultural products Zheng Exchange have special seats in the transaction. Louis Dreyfus, and other foreign-funded enterprises at home and abroad through the impact on the domestic futures market, spot prices, at the same time, imports of cotton and through their impact on domestic acquisitions of domestic cotton futures prices in the futures and spot market are two huge gains. In particular, they are in the futures market and operational skills to make money, so many difficulties in the domestic cotton business was very much shocked.

In “Dances with Wolves”, used to “face-to-face” transactions in the domestic cotton enterprises, regardless of funding, marketing or experience, can not compete with them, has exposed weaknesses. “Some foreign companies to buy from the domestic cotton price and our price is almost the same, they may be able to derive a substantial income; and the same cotton, we are very difficult to sell, let alone make a lot of money.” One of Xinjiang Cotton are depressed, said.

Shouted the “crying wolf” At the same time, domestic cotton are some of the skilled migration does not deny that in the spot and futures markets of the two giants are both armed to the teeth of the “wolf”, is the object of study. Their global procurement, global sales and a means of strength, but also domestic cotton are envious of.

In the past three years, Louis Dreyfus, chairman of China, Chen Tao on how to do a good job in soybean, cotton futures operation to the Chinese enterprises made more than 100 lectures. Hubei Yinfeng Cotton Co., Ltd. integrated Manager Wang Ye said that they have brought advanced operating concepts and tools, which will no doubt give us “make up” a lesson in favor of domestic cotton prices to the international advanced standards. From this perspective, that they are “teacher” by no means over.

Foreign “alternative” to continue to expand market

In view of the large concentration of cotton imports into China, domestic cotton price fluctuations caused by frequent blockage Jin Yi farmers to increase channels of the country in recent years to implement the “quasi-sliding tax” policy, the stability of the domestic cotton price, the quantity of imports of cotton also significantly reduced. No longer satisfied with the operation of other countries in cotton cross-agricultural products also began to adjust strategy to gradually intervene in China in the field of cotton.

Due to participation in the domestic cotton futures trading business was relatively small, cotton futures market at present, a considerable part of the “standardization of the sale and purchase agreement” by the Louis Dreyfus and other transnational companies held by the cotton. In recent years, these enterprises have been provided by domestic cotton is the main advisory Wanda Futures Co., Ltd., in charge of the business research and development experts elements Wang said China’s cotton futures price is now basically depends on the situation and textile exports of these transnational giants In the domestic market “operation.”

According to the Agricultural Development Bank of China Hubei Branch of the investigation, in September last year until now, only for Louis Dreyfus in Hubei bought 40,000 tons of cotton. According to Xinjiang and some of the Louis Dreyfus’s cotton business enterprises revealed that the international trade of agricultural products giant in the same period in Xinjiang through local enterprise “secret” not to buy cotton under 10,000 tons. These cotton futures market or through a “hedging” or speculative trading, although the number is not large, but only 200,000 tons of the total delivery of cotton futures market, the effects can be imagined.

It is worth noting that in the current domestic cotton futures market Fanyunfuyu of Louis Dreyfus, is a few years ago, Chinese soybean industry “tragedy” of one of the producers. Before and after 2004, the international trade of agricultural products giant to seize the domestic business embarrassing press time, take the M & A, equity, in the form of joint ventures, easily took control of most of the domestic soybean crushing business.

Zhengzhou Commodity Exchange, the Ministry of Research and Development of the High Commissioner Ji Guang slope “at the moment it is difficult to assess whether or not the practice of multinational companies on China’s cotton industry has created a sufficient threat, but they expand into China’s speed and size should be of sufficient concern, especially In the acquisition, processing in the field of movement. It is regrettable that our country is now almost none of the functions of their departments or agencies to track the movements of the investigation. ”

Guo Chanmian pricing alert “voice” devolution

Some in the industry believe that China’s textile exports two out, the need to import large quantities of cotton, in this case, the domestic cotton industry more easily controlled by others. If they are in cotton processing in the field of “too far”, most likely a result of China’s domestic cotton prices will gradually lose the right to speak.

Ji Guang analysis of the slope, said: “Once they took control of a large number of domestic cotton resources, the effectiveness of national control measures will be greatly reduced, and domestic enterprises will not be able to continue to compete with them.” In the domestic cooking oil prices last winter and spring storm, a large number of By foreign-controlled oil companies were ignoring the limit Chinese Government initiatives, private or price hikes, hoarding or not to ship, and its ability to manipulate the market can be seen.

Agricultural Development Bank of China customer 2 Jianqiang, deputy general manager Zhou said that China’s government only allows foreign investors to participate in the acquisition and operation of cotton, they have not yet approved the creation or acquisition of cotton processing enterprises, through their involvement in the field of cotton processing to control the cotton industry as a whole, It is hard now. However, he said: “I do not rule out the possibility of these multinational corporations have penetrated into cotton processing industry may be because they most likely will be drilled policy ‘taking advantage’.”

It has been revealed that some cotton, cotton Yi Kamu Group of agricultural products, such as cross-border corporate giants as early as a year ago, our country has been through the injection of capital investment, and other means to control the number of domestic cotton enterprises, these enterprises are now within enterprises The form. Ji Guang-po said that most of the functional departments of China’s domestic cotton industry is likely to pose a threat to the import of cotton, to the neglect of foreign investment on domestic resources, control of cotton.

In fact, due to the quasi-sliding tax system, our country can control the number of imported cotton. Once foreign investment can be fully mastered the domestic cotton price “voice”, regardless of the number of domestic cotton production, futures, spot market will not be able to escape the two were playing in their hands the fate of the impact of such pressure and, regardless of the cotton industry or The textile industry are difficult to sustain. Ji Guang slope, and other experts said, “Once they make, how do we deal with, the relevant functional departments of the country should begin to consider as soon as possible.”