70 breeding companies participated in the trading of live pig futures for half a year

 　　Since the listing of live pig futures on the DCE on January 8, the market has been operating steadily and orderly.
The price trend basically reflects the expectation of future spot market development.
The number of industrial customers has steadily increased, and the functions of price discovery and hedging have begun to be gradually brought into play
.
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　　Statistics show that live pig futures have been running smoothly since they were listed on the DCE on January 8 this year, and industrial customers have actively participated
.
As of the end of June, the cumulative trading volume of live pig futures reached 1.
569 million lots, with a turnover of 573.
16 billion yuan and an average daily holding of 25,000 lots
.
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　　A number of listed companies participated in the transactionfAc China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Since the listing of live pig futures, 12 listed live pig breeding companies, including Muyuan shares, have issued announcements stating that they plan to use the futures market to assist their operations, and 70 breeding companies have participated in futures trading
.
Among the top 20 leading companies in pig breeding, 19 have submitted application materials for delivery warehouses to DCE, and 11 have become delivery warehouses for pig futures
.
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　　Especially since June, the spot price of live pigs has fallen sharply, industry companies have a clearer understanding of the role of the futures market, and more industry customers have begun to participate in hedging or increase the scale of hedging
.
The data shows that in June, the number of unit customers participating in hog futures trading exceeded 1,000 per day, an increase of more than 60% over May, and the average daily position of industrial customers exceeded 30,000 (bilateral), an increase of over 150% over May
.
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　　After the listing of live pig futures, China's small and medium-sized farmers and breeding companies have actively participated in the "insurance + futures" project based on the price of live pig futures to lock in the price of future live pigs in advance
.
According to incomplete statistics, 34 futures companies have joined 11 insurance companies and local governments to carry out more than 180 live pig "insurance + futures" projects, involving various forms such as pig price insurance and breeding profit insurance, covering Sichuan and Henan In 30 provinces, municipalities and autonomous regions, the guarantee scale has reached 547,400 pigs
.
Among them, the "DCOM Farmers Income Guarantee Program" has established 43 live pig "insurance + futures" decentralized projects.
As of the end of June, 13 projects have been issued orders, and 4 projects have received government funding support
.
For example, the Hunan Provincial Department of Finance, on the basis of the pig feed "insurance + futures" project in 2020, included the pig "insurance + futures" into the scope of the provincial agricultural insurance innovation pilot for the first time this year, replacing the past pig price index insurance, and the provincial government The capital contribution does not exceed 40% of the total premiums of all projects, and the county government contributes no less than 30% of the total premiums of all projects.
15 counties in the province are supported to carry out a pig "insurance + futures" project.
The total investment is expected to exceed 18 million yuan
.
Another example is the pig breeding income index insurance project carried out by Dadi Futures in conjunction with Pacific Property and Casualty Insurance in Yancheng District, Luohe City, Henan Province, which provided protection for 7,000 local pigs.
After the end of the project cycle, it achieved a claim of 2.
51 million yuan, with a loss rate of 500%.
In the case of a narrowing in the income of pig breeding, it has well compensated for the losses that farmers may face
.
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　　Zhou Xiaoqiu, chief researcher of agricultural products at Guotai Junan Futures, said that the spot price of live pigs fluctuated sharply in the past six months, but the basis of the September futures contract has shown a narrowing trend; since May, with the increase in trading volume, the spot price of live pigs has been correlated.
The coefficient reached 0.
95, indicating that the price discovery and risk management functions of hog futures began to emerge
.
For new products, the main function in the initial stage of listing is to discover forward prices and stabilize market expectations.
Enterprises also need to gradually expand the scale of participation through understanding, experimentation, and familiarization.
All parties need to take care of it.
I believe that as more industrial enterprises participate Among them, live pig futures will gradually provide more effective services for the production, circulation and consumption of China's pig breeding industry
.
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　　“After the pig futures was approved by the China Securities Regulatory Commission last year, Dekang Group began active preparations.
In October last year, the core team of pig futures hedging
was established and completed.
Subsequently, it established and improved the investment and research system for the pig futures and actively applied to become the first Batching the pig futures group’s delivery warehouse, and participating in the first batch of pig futures hedging transactions.
The group firmly believes in hedging.
Through hedging in the futures market, it partially compensated for the company’s losses due to sharp fluctuations in the spot market
.
" Dekang Group Marketing Center Director Zhuo Yuchao told the Securities Daily reporter that since the beginning of this year, the average price of pigs for slaughter nationwide has dropped from a high of 38 yuan/kg at the beginning of the year to less than 13 yuan/kg in late June.
The depth of decline is rare in history.
The cost line of production methods such as outsourcing piglet fattening, secondary fattening and self-reproduction and self-raising has been broken, and the industry is facing severe challenges in terms of breeding profit and cash flow
.
In response to the impact of falling prices, Dekang Group has proposed to reduce costs and increase efficiency on the one hand, and on the other hand, it actively seeks effective risk management tools to achieve stable operations
.
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　　According to Zhuo Yuchao, the group has also actively participated in the pilot projects of “insurance + futures” for pigs in Sichuan, Yunnan, Guizhou and other places to help farmers lock in profits; Etc.
, using a variety of tools such as on-market and over-the-counter options to flexibly carry out hedging, and try to use futures and derivatives to prevent operational risks in a normal way
.
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　　Make every effort to complete the delivery workfAc China Feed Industry Information Network-Based on feed, serving animal husbandry

　　It is understood that, in order to ensure the safe and stable operation of the live pig futures market and promote the gradual functioning of the market to effectively serve the industry, DCE has learned from the risk prevention and control system of other mature varieties, combined with the operating rules of the live pig spot market, and strictly designed including price limit, margin, Parameters such as position limit and transaction limit shall be adjusted accordingly according to market conditions to effectively prevent and control market risks
.
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　　According to the relevant person in charge of DCE, since the listing of live pig futures, DCE has first strictly implemented relevant wind control systems and continued to strengthen market supervision to ensure the stable operation of the market; second, based on the status of the live pig spot market, it has inspected and increased the delivery of live pig futures.
Warehouse, set up premiums and discounts for part of the delivery area, to prepare for the next increase in delivery warehouses; third, postgraduate off-farm market transactions, provide convenient services for industrial chain enterprises to participate in, and meet the diversified needs of entities; fourth, all Fangwei has done all the preparations before delivery, and ensured the smooth delivery of pigs by carrying out simulated delivery, training of quality inspection institutions, construction of intelligent delivery warehouses, and pig delivery APP testing
.
In addition, in May of this year, DCE and the National Meteorological Center renewed the strategic cooperation agreement, and will carry out in-depth cooperation in the study of the force majeure meteorological assessment program for the delivery of pigs
.
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　　The above-mentioned person in charge stated that in the next step, DCE will firstly organize and carry out simulated delivery of live pig futures, and make every effort to prepare for the delivery of live pig futures; second, strengthen industry cultivation and investor education, and guide industrial enterprises to rationally use futures market arbitrage.
Periodic value preservation, through participation in "insurance + futures" and other stable production and operation; third, dynamic tracking of industrial development and changes, in the process of market cultivation, according to the structure of participants, gradually promote hog futures to moderately increase liquidity, and continuously improve the risk management of undertaking industrial enterprises Ability
.
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