1, the price of live pigs fluctuates greatly: the price of live pigs is affected by many factors, such as changes in market supply and demand and epidemic situation. , which brings great uncertainty to the formulation of contract standards.
2. Regional differences: China has a vast territory and the price of live pigs varies greatly from place to place. For example, the southern supply is abundant and the price is low, while the northern supply is short and the price is high. Regional differences will also bring difficulties to the formulation of pig futures contracts.
3. Pig breeds: There are many kinds of pigs in China, and the breeding cycle, meat quality, meat price and other factors of different breeds are also different, which brings great challenges to the formulation of contract standards.
4. The participants in the futures contract are complex: the pig futures contract needs to consider the needs of many stakeholders, such as farmers, breeding enterprises, meat processing enterprises and investors. Different participants have different needs and interests, so it is necessary to formulate reasonable contract standards to meet the needs of all parties as much as possible.