Modern feed enterprises should actively participate in futures market

Introduction: China's feed enterprises should learn from participating in the international market competition and learn to use futures for hedging; they should actively participate in the futures market after mastering the characteristics and trading principles of the futures market Recently, at the seminar on price risk management of feed enterprises sponsored by Dalian Commodity Exchange, Beijing Jingyi futures brokerage Co., Ltd and other professional organizations, many futures practitioners of feed production enterprises and scholars from feed Research Institute of Chinese Academy of Agricultural Sciences, Tsinghua University, Renmin University, and China Agricultural University reached the above understanding, and discussed how to use futures to avoid risk There is a heated discussion on the risks of feed enterprises Cao Sheng, vice president of Beijing futures chamber of Commerce and deputy general manager of Jingyi futures brokerage Co., Ltd., said that China's feed enterprises should learn from a series of painful setbacks encountered by a series of domestic heavyweight enterprises participating in the international market competition, and feed enterprises should learn from the experience of using futures to hedge Xu Junbao, President of the challenge group, also said that many feed enterprises are not able to use futures to hedge well and have not achieved the goal of avoiding risks As a modern feed enterprise, we should study the futures knowledge hard, not only take the high-tech road in feed technology, but also realize that the price fluctuation in the futures market is closely related to the production and sales links of spot enterprises Through hedging in the futures market, we can improve the operation and management of feed enterprises, so that enterprises can better cope with the domestic and international market The price volatility of the cloud Zhao Zhong, manager of Beijing Jiahe Lihua Feed Co., Ltd., believes that soybean prices at home and abroad soared at the beginning of this year As a downstream production enterprise, the feed factory is facing operational risks brought by the rising soybean meal prices Feed enterprises have no right to speak in the purchase of raw materials and are in a relatively passive position Feed enterprises need to use the basis pricing of futures market to improve the voice in raw material procurement Professor Song Fengming, a futures expert from Tsinghua University, said that a common challenge faced by the futures market and feed enterprises is that the correlation between foreign spot market and futures market is very high, but the correlation between domestic spot market and futures market is not enough However, according to the financial principles of equilibrium, optimization and no arbitrage, the value evaluation and risk management can be carried out through financial market transactions in the market economy Therefore, feed enterprises should participate in the futures market, but the premise is to master the characteristics and trading principles of the futures market Feed enterprises should strengthen the study of futures knowledge, so as to help enterprises to make correct decisions In terms of the impact of the current macroeconomic situation on the futures market, Cao Sheng said that the emphasis on macro-control during the "two sessions" and the policy of improving housing loans are good signals, indicating that the domestic economy is not a soft landing, but rather active, and the demand for raw materials is still very strong He believes that after the whole bearish, the market is sensitive to the bullish theme, which will lead to a retaliatory seasonal rebound, a return to equilibrium, shock and bottom support Secondly, the bottom of the period has been realized, which has become the basis for callback buying The final result of the third South American weather market and the seeding situation in the United States (March 31 seeding report) will determine the annual trend He suggested that feed enterprises should follow the following principles when purchasing Futures: buy as needed, small batch in and out; increase the purchase of raw materials with the depth of price correction and do not chase up the high price.