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How do feed enterprises use futures market to avoid market risks?
Feed includes more than ten kinds of feed raw materials such as soybean, soybean meal, corn, fish meal, amino acids, miscellaneous meal, whey powder, oil, meat and bone meal, grain, feed additives, etc.

The related varieties in China futures market include corn, soybean meal, soybean, soybean oil, palm oil wheat, rapeseed oil, rapeseed meal and other futures contracts.

The risks faced by companies and enterprises include business risks caused by the slowdown of domestic macroeconomic growth, the risk of fluctuation of feed raw material prices, the risk of fluctuation of livestock and poultry prices, the risk of aquaculture decline under the pressure of environmental protection policies, and the risk of exchange rate fluctuations.

When the price of raw materials continues to fluctuate greatly and the company's main business faces certain market risks. Hedging within a reasonable range will help the company effectively avoid market risks, hedge the impact of raw material price fluctuations on the company's production and operation, stabilize the annual operating profit, and reduce and reduce the impact of raw material price fluctuations on the company's normal production and operation.

Generally, there are hedging, cash conversion and spot trading.

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