The first thing you need to understand is that the futures market is based on the spot market and is an expectation of the spot price. In this case, there must be the problem of physical transaction, which is called "futures delivery". Since we want to buy and sell in kind, we must "discuss" a time, but this "time" is standardized in the futures market, which is the futures standardized contract (see below). The only uncertainty in this contract is the price!

Soybean 1 futures contract

Soybean 1.

Trading unit 10 ton/lot

Quotation bits (RMB)/ton

The minimum price change is 1 yuan/ton.

4% of the settlement price of the previous trading day.

The contract delivery months are 1, 3, 5, 7, 9, 1 1.

Trading hours are from Monday to Friday from 9: 00 am to 1 1: 30 am and from 13: 30 pm to 15: 00 pm.

Last trading day The tenth trading day of the contract month.

The final delivery date is seven days after the final transaction date (postponed in case of legal holidays).

See the attached table for the specific content of delivery grade.

Delivery place Dalian Commodity Exchange designated delivery warehouse

5% of the contract value of the trading margin

The transaction fee shall not exceed 4 yuan/hand.

Delivery method physical delivery

Transaction code a

Listed exchange Dalian commodity exchange

Note: According to the relevant provisions in Articles 4 and 11 of the Risk Management Measures of Dalian Commodity Exchange, after research, it is decided that our firm will temporarily expand the price limit of soybean 1, soybean meal, soybean oil and palm oil to 5% and raise the minimum trading margin standard to 7% from the time of settlement on Monday, March 24, 2008. Other provisions on the price limit and margin of trading are still implemented according to the Risk Management Measures of Dalian Commodity Exchange.

Attached Table 1: 1 Soybean Quality and Technical Requirements

The lowest index of pure grain delivery rate grade% seed shell impurity% moisture% odor color premium

(RMB/ton) discount

(RMB/ton)

The yellow mixed color grain limit of standard third-grade soybean 9 1.0 is 5.0% 1.0 13.0 normal-

-

Substitute 96.0 30-

Secondary soybean 93.5 10-

Grade 4 soybean 88.5-30

[Note] 1. Soybean: The seed coat is yellow, the umbilical color is yellowish brown, light brown, dark brown, black or other colors, and the grain shape is generally round, oval or oblate;

2. Genetically modified soybeans shall not be delivered as standard products or substitutes;

3. The delivery price of standard products = delivery settlement price;

4. Substitute delivery price = delivery settlement price+substitute premium+quality difference premium;

5. Quality inspection standards and methods shall be implemented according to GB 5490 ~ 5539-85 Inspection of Grain, Oilseeds and Vegetable Oils;

6, health standards and animal and plant quarantine projects in accordance with the relevant provisions of the state;

7. See Schedule 2 for the allowable range of moisture and impurities;

8. For the specific requirements of packaging, please refer to the relevant provisions of the big business delivery;

9. Warehousing indicators: crude fatty acid price ≤3.5, protein dissolution ratio ≥ 75; Outbound index: crude fatty acid price ≤5, protein dissolution ratio ≥60.

Schedule 2: Price Increase and Quality Difference Deduction of SoybeanNo.1

Quality standard% allowable range% quality difference% (high+); Low) Price increase (RMB/ton) is note.

Contract monthly water content13.011.1.3

In May, July and September, the contract month is ≤13.5-1.0+201. If the premium rises to 12.0% water content, 2. Below or above the standard and less than 1.0%, the deduction will not be calculated.

+ 1.0 -55

Impurity 1.0

+0.5 -30

Note: Price deduction for poor quality = price deduction for moisture+price deduction for impurities.