Sino-Singapore Jingwei Client, January 8th. On the 8th, live pig futures were officially listed for trading on the Dalian Commodity Exchange (hereinafter referred to as the "DaCom"), and the opening fell by more than 3%.
This is also my country's first live delivery futures product.
According to the business rules issued by DCE, the live pig futures contract adopts physical delivery, the transaction code is LH, and the contract months are 1, 3, 5, 7, September, and November.
The trading unit is 16 tons/lot, and the quotation unit is Yuan (RMB)/ton.
The minimum price change is 5 yuan/ton, and the maximum order quantity for each transaction order is 50 lots.
The benchmark price of the listing is: LH2109 contract 30680 yuan/ton, LH2111 contract 29680 yuan/ton, LH2201 contract 28680 yuan/ton.
In addition, the trading margin standard, price limit range and position limit of the live pig futures contract shall be implemented in accordance with the relevant provisions of the "Dalian Commodity Exchange Risk Management Measures".
The last trading day is the last 4 trading day of the contract month; the last delivery day is the 3rd trading day after the last trading day.
Source: Dashang
The formation of the industrial chain risk management system
According to the official website of the DCE, when answering questions from reporters on the listing of live pig futures, the listed live pig futures are of great significance to the long-term and stable development of the live pig industry and will promote the development of the live pig industry into a new stage.
After the live pig futures are listed, together with futures options such as corn and soybean meal, a relatively complete industrial chain risk management system has been formed from the planting and processing of main feed ingredients to breeding
. Pig breeding companies, slaughter and processing companies, pork traders and other live pig industries Various entities can use futures tools to avoid the risk of spot price fluctuations, thereby increasing the stability of business operations and the sustainability of growth in all links of the industry chain.
At the same time, live pig futures will provide the market with an open, transparent and continuous price reference, which is conducive to the optimization of resource allocation for breeding enterprises, reasonable control of the scale of breeding, and the healthy development of the entire industry.
Government departments can also grasp the trend of supply and demand in the pig market based on the futures market price signals, so as to formulate more targeted macro-control policies, scientifically guide the pig industry to adjust the scale and direction of production and operation, and help achieve the national macroeconomic control goals.
In addition, the listing of hog futures will help promote business innovations such as "insurance + futures" in the hog industry, provide price benchmarks for related businesses, and enhance the breadth, depth and strength of financial institutions' services for "agriculture, rural areas and farmers".
Why use live pigs as the subject of trading?
Why did DCE choose to list futures contracts based on live pigs?
In this regard, the person in charge stated that DCE has been carrying out research on the stock of pig breeds since 2001. During this period, the subject matter of the researched breeds has been continuously adjusted. Pig carcasses, live pigs, piglets, cut pork, frozen pork, live pigs, etc. Rotation of research and development, staggered and simultaneous progress, the choice of delivery method is also repeatedly demonstrated on the feasibility of physical delivery and cash delivery.
Taking into account the current situation and pattern of industrial development, industrial scale, standardization level, and the need to serve the real economy, the exchange chose live pigs as the transaction target
.
It can be said that the live pig futures varieties that are delivered in real life and are delivered in physical form are the result of mutual efforts in the futures market and the final consensus reached after two decades of joint efforts.
According to reports, live pig futures is my country's first live delivery product. DCE has formed a system based on "pre-management, simple delivery, multiple models, and strict risk control" in its system design.
mainly include:
One is to implement a pre-management model, to pre-require most of the quality indicators, to ensure the standardization of slaughter pigs through the standardization of the breeding process, and to simplify the delivery process;
The second is to implement the daily selective delivery and vehicle board delivery system for pig farms to meet the characteristics of high timeliness of live pig delivery and high delivery efficiency requirements, while increasing the frequency of delivery, facilitating sellers to participate in delivery, and improving the ability of the pig futures service industry;
The third is to implement a daily inspection system for pig delivery companies, entrust a third-party professional organization to conduct regular or irregular inspections of the breeding companies participating in the delivery, and urge the breeding companies to strictly follow the requirements to manage the breeding process;
The fourth is to expand the physical delivery mode of live pigs, and guide most physical delivery through market-oriented methods to solve the diversified delivery of cash, negotiated delivery, and convenient delivery;
The fifth is to strictly control risks, by setting a higher margin level, moderately relaxing the price limit, and implementing a strict position limit and trading limit system to ensure the steady start of the listing of live pig futures and curb overheating of transactions.
(Zhongxin Jingwei APP)