Pig futures are expected to solve the "pig cycle" problem. For a long time, the pig industry in China has been troubled by the "pig cycle". The cycle track of "pig cycle" is generally like this: high meat price-a large increase in fertile sows-an increase in the supply of live pigs-a decrease in meat price-a large elimination of fertile sows-a decrease in the supply of live pigs-an increase in meat price.
The approval of the listing of live pig futures is of great significance to the long-term stable development of the live pig industry. By participating in futures trading, enterprises in related industries can promote pig futures, give full play to the price discovery function, and provide open, transparent and continuous market reference prices, which is conducive to cultivating enterprises to optimize resource allocation, reasonably control the scale of breeding, and promote the healthy development of the whole industry.
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Pig futures will become the most valuable agricultural and sideline products in China, the first fresh commodity futures variety:
It is understood that China is the world's largest producer of live pigs and consumer of pork, accounting for more than 50% of the global total. In 20 19, China sold more than 540 million pigs and produced more than 42 million tons of pork. Due to the recent price increase, the market scale has risen from nearly one trillion yuan in normal years to nearly two trillion yuan.
After more than ten years of development, the scale and standardization level of China's pig industry have been greatly improved. The market share of large enterprises' live pig market turnover rose to 53%, of which foreign capital accounted for more than 70%. All these have created more favorable conditions for the listing of live pig futures.