The successful experience of developing corn futures in the United States

Introduction: new page 1 the United States has become a global corn pricing center by using the corn futures market It also controls the global corn trade and regulates the world corn production By studying the effect of American futures market on corn industry in the United States and the world, we can find out its successful experience and apply it to the development of corn industry in China Zeh us is the first country to start futures trading, and corn is the first futures product launched in the US There are three exchanges trading corn futures contracts in the United States, among which CBOT trades corn futures, small corn futures and corn options, Central American commodity exchange trades corn futures and corn options, and Minneapolis Grain Exchange trades corn index futures and corn index options Since corn futures came into being, it has been the largest agricultural futures trading volume in the United States and the largest agricultural futures in the world At present, the annual turnover of CBOT corn contracts often ranks among the top 20 active contracts in the world, and firmly occupies the top position of world agricultural futures The research shows that the effect of American futures market on American and world corn industry is mainly reflected in the following three aspects: first, to promote the development of American corn order agriculture Agricultural production in the United States is very developed In order to avoid the risk of price decline after grain output, in addition to the direct participation of individual large farmers in the futures market to avoid the risk, the vast majority of small and medium-sized agricultural producers participate in grain circulation through various sales cooperatives, and avoid the risk through various effective and practical ways Farmers first sign a certain agreement with the sales cooperatives according to their actual situation, and then the cooperatives enter into the futures market to maintain their value, or directly enter into other sales channels The agreement signed between farmers and cooperatives is actually an order, which can transfer the risk of price fluctuation The form of agricultural orders in the United States is very flexible Farmers can not only use orders to realize forward trading, but also use orders to carry out options trading Zeh 2 The United States obtained the world corn pricing right through the futures market and became the global corn pricing center One of the basic functions of futures market is to discover price As the largest corn futures market in the world, CBOT's international influence on corn futures price is obvious At present, in the international corn market, the formation and trading of corn trade price is centered on the corn futures price of CBOT, which is one of the most important bases for both parties to consider in the international corn trade The United States has obtained the pricing power of international corn trade through Chicago corn futures market, playing a leading role in the international corn market, and can have a profound impact on the development of domestic and other countries' corn industry The advantage of getting international pricing power of corn mainly lies in that when the demand for American corn increases abroad, American corn traders can gain more profits by raising the futures market price Corn producers and traders in the United States are more likely to influence futures prices by their own actions, which is difficult for corn operators in other countries The United States uses CBOT to control the global corn trade and affect the world corn production The proportion of American corn spot enterprises and farmers participating in futures market hedging is very high It is estimated that more than 905 farmers in the United States directly or indirectly participate in futures trading, in which large farmers directly enter the futures market for hedging transactions, and small and medium farmers indirectly enter the futures market through cooperatives and other forms Because of the wide range of participants in corn futures, the price of corn futures can truly reflect the supply and demand of corn in the future Therefore, the U.S government's macro-control departments should refer to the corn futures price when determining the corresponding corn industry policies, regulating supply and demand, and making production plans Zeh corn futures is the largest agricultural product futures in the United States Futures trading plays a significant role in avoiding the risk of corn spot operation Firstly, corn futures price is widely used in spot production and trade According to the supply and demand trend of corn futures price, farmers determine the corn planting area in the second year, so as to reduce blindness in production and reduce risk Traders determine the price of corn in spot trade contract through corn futures price As corn futures price is generally recognized, futures price can determine reasonable contract price and avoid price risk Secondly, for each large international corn trade, traders should hedge through related futures transactions to avoid price risk The unique hedging mechanism of futures market can ensure that traders are effectively protected In the United States, this practice is one of the basic conditions for traders to obtain bank loans, and has become an international practice ZEH