After the pig futures are listed, farmers, processing enterprises and traders can choose the right time to sell or buy futures contracts in the futures market, and lock the selling or buying prices at a relatively ideal level in advance, thus avoiding the risk of periodic fluctuations in spot prices. Take a large-scale farmer who raises 65,438+0,000 pigs as an example. Each pig is raised to 100 kg, and the raising cost is around 700 yuan. When the future price trend is uncertain, farmers can use the pig contract to enter the futures market in advance for hedging. When the market price is at that time, farmers can still sell the 1 0,000 pigs at the contract price, thus avoiding the risks of farmers and the sales of pigs will go to the whole country. When the pig price in a certain area is too low, the price can be balanced through the national market.

On the other hand, because the pig futures contract is a standardized contract, the quality, specifications and quantity of commodities used for trading are clearly stipulated, and different trading prices are clearly stipulated for different grades of commodities. "Good quality and good price" will certainly guide farmers to speed up the process of pig variety improvement and scientific breeding, thus promoting the development of pig breeding industry to scale and standardization.