The influence of reopening corn futures on domestic corn market

Introduction: in the new situation, facing new problems, the re opening of China's corn futures market will have the following impacts on the domestic corn market: 1 It is conducive to meeting the challenges brought to us by China's accession to the WTO At present, there are two kinds of price policies for corn acquisition in China: to continue to implement the protection price acquisition for the main production areas in Northeast China, and to withdraw the protection price acquisition for corn in other areas (such as Hebei, Shandong, Henan, Shanxi, etc.) From the perspective of the main corn producing areas in Northeast China, China's accession to the WTO will bring impact on the protective price of corn Because the futures price is generally higher than the protective price of the producing areas, the futures market will not only not impact the protective price of corn in the main corn producing areas in Northeast China, but also may provide a new channel for the sale of corn at a favorable price due to the existence of physical delivery rules in the futures market From the perspective of Hebei, Shandong, Henan, Shanxi and other regions, these regions are the main production areas of low moisture and high-quality corn When the corn in these regions withdraws from the protection price, the price will be adjusted by the market supply and demand, and the producers and operators will face the market risk of variable price directly Timely resumption of corn futures trading will help corn producers and traders in these regions to effectively avoid price risk, thus stabilizing the production and circulation of corn 2 It is conducive to play a guiding role in grain production At present, based on the existing grain market system in China, the futures market and wholesale market are further combined to form a complete and multi-level market system, so as to guide farmers to arrange corn production according to market demand more effectively through the market In particular, the reasonable design of corn futures contract can not only ensure producers and operators to avoid market risks, but also guide farmers to adjust the structure of corn varieties and improve the quality of corn For example, if the quality of corn futures contracts is high, such delivery quality and the formed futures price can guide farmers to grow high-quality corn 3 It is conducive to invigorating operation and reducing losses of state-owned grain enterprises At present, the corn market is in a situation of oversupply, with periodic surplus and serious loss of grain enterprises It is not only not suitable for the demand of "entering WTO", but also difficult to survive In order to get rid of the difficulties, grain enterprises need to use the futures price to guide the operation, and also need to use the futures market as a hedging tool to disperse market risks and improve the competitiveness of enterprises It is of great significance for grain enterprises to take the futures market as an effective means for grain circulation enterprises to avoid operational risks and ensure target profits, so as to improve their operation and economic benefits, and at the same time, to make grain enterprises more adapt to the development of market economy Corn is the oldest futures variety in the world It is reported that China will reopen corn futures in July this year, and now China's futures market has been gradually standardized The hedging and price discovery functions of futures trading will play a protective role in risk aversion of grain market And now the conditions are getting more and more mature, it is fully possible to reopen the corn futures varieties, and will play a significant role.