[Explanation] On May 13th, DCE issued an announcement to comprehensively adjust the premiums and discounts in the delivery area of hog futures, and set the premiums and discounts in areas where the premiums and discounts were not announced in the delivery area before, in order to expand the area of hog futures serving the real economy. scope, and better serve the high-quality development of the live pig industry and the stable supply and price of live pigs.
[Explanation] Since the second half of 2021, my country's live pig production capacity has gradually recovered to the level before African swine fever, and the market supply has continued to increase; the implementation of new policies for live pig transportation in many places, coupled with the occasional African swine fever epidemic, multiple factors have led to price differences between live pig spot regions Fluctuations are violent, and the premiums and discounts in some areas of hog futures set earlier have been difficult to adapt to the actual changes in the spot market.
[Concurrent] Cui Daihu, Manager of Commodities Department One of Dalian Commodity Exchange
This adjustment is to better fit the actual situation of the spot, expand the delivery service scope of hog futures, and prepare for the continued establishment of delivery warehouses.
In this adjustment, the adjustment of premiums and discounts in Sichuan-Chongqing, Hunan-Jiangxi and other regions is relatively large. The main reason is that the production capacity of live pigs in these regions and the surrounding southern provinces has increased greatly in the past year, the supply in the region is sufficient, and the spot between regions is available. The price difference is also relatively large.
[Explanation] Since the listing of live pig futures on January 8, 2021, it has received great attention from breeding enterprises. Some leading breeding enterprises have tried to use the futures market for risk management, locking in breeding profits during the downward cycle of pig prices, and achieving stable production and operation. .
Market participants believe that this adjustment will have a positive effect on companies participating in the market.
[Concurrent] Wang Ruiting, Head of Hog Futures Business of Muyuan Foods Co., Ltd.
DCE adjusts the premiums and discounts of hog futures according to the actual market conditions, which can make it easier for industrial enterprises to participate in futures delivery and carry out risk management, and help ensure the smooth operation of hog futures trading and delivery.
[Explanation] In the next step, DCE will continue to adjust and optimize the contract rules, study and optimize the group delivery warehouse agreement delivery model, promote the pork agreement delivery plan, and support more large-scale large-scale breeding enterprises to participate in the futures market by setting up delivery warehouses.
Reporter Yu Ruizhai reported from Dalian, Liaoning
Responsible editor: [Li Ji]