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    Home > Food News > Food Articles > Grain enterprises accelerate the pace of improving agricultural weather risk management

    Grain enterprises accelerate the pace of improving agricultural weather risk management

    • Last Update: 2022-09-01
    • Source: Internet
    • Author: User
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    (Reporter Bao Xiaotie) Recently, Dalian Commodity Exchange (hereinafter referred to as Dalian Commodity Exchange) and the Central Meteorological Observatory jointly launched the "2022 World Meteorological Day" theme publicity activity, with the theme of "Early Warning, Early Action", Remind the public, no matter now or in the future, to pay attention to weather changes, be prepared and be able to take actions in advance to reduce the impact on production and life


    China has a vast territory and complex and changeable climatic conditions.


    Some foreign scholars have researched on the performance of soybean and corn producers in different regions such as Illinois in the United States using temperature index derivatives to hedge their risk performance and found that purchasing related derivatives can reduce their income risks measured by yield by 10.


    DCE is based in Northeast China, and has always regarded serving "agriculture, rural areas and farmers" and promoting agricultural development as the foothold to give full play to its market functions


    Since 2021, the two sides have further cooperated to update the temperature fluctuation data of cities in China for the past 30 years, improve the temperature index compilation plan based on refined weather forecast, and publish it on their respective official websites; As one of the key varieties of DCE’s business expansion into the index sector


    According to market participants, DCE has in-depth cooperation with the Central Meteorological Observatory to scientifically and rationally design various weather indices and expand the application scope of meteorological information, which can provide relevant industries with a convenient channel to understand weather risks, enhance the awareness of agricultural weather risk management, and provide the next Further exploration and development of corresponding futures derivatives will lay a solid foundation


     

    "China Food News" (08 edition on April 4, 2022)

    (Editor-in-charge: Bao Xiaotie)

     

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