First, the trend of domestic urea futures is opposite to that of some crops. In fact, it is not difficult for people to understand that the trend of some domestic urea futures and natural gas crops is opposite, because the upper end of these urea products is natural gas and the lower end is crops. Because urea products need to be supplied to crops, its lower end is crops and its upper end is non-renewable resources, natural gas and coal. In China's urea futures market, urea futures bears account for nearly 3 1% of China's market share, and their share in the whole market has been on the rise, so the short-term profit of domestic urea futures is very strong.
Second, why urea futures will rise. In fact, we can find that the price of urea has been rising by observing the buying opportunity in the market. In the current futures market, this is influenced by environmental factors. Now the country advocates environmental protection, so it tries to reduce the use of pesticides such as crop fertilizers, so the lower-end products of urea have been greatly reduced, so the demand for domestic urea futures products has gradually declined, leading to further price decline. In order to ensure that their rights and interests are not damaged, futures prices rise, but it also leads to the disconnection between domestic urea products and the spot market. Therefore, urea futures products now occupy a large proportion in the domestic market, but some netizens think that this is a backstage operation.
Three. Conclusion However, from the overall situation of urea futures products supply, futures products are declining. There may be a further decline in the later development and a slight rebound in the future. However, this rebound is very small, but with the maturity of the urea futures market now, there may be more advantages in the future.