Where there is capital, there is slaughter. It is no secret that capital manipulates the price of egg futures, strangles small and medium-sized retail investors and makes huge profits. So how does capital manipulate the price of eggs? Let's have a look.

First of all, we should know that Dalian Commodity Exchange has a trading rule that retail investors can't enter the delivery month, that is, the day before the delivery month. If they don't take the initiative to close their positions, they will automatically clear their positions.

On June 20 14, the price of the egg futures contract 1409 of Dashang Institute was 5245 yuan per 0.5 ton, that is, 5.3 yuan per catty. At that time, the actual price of eggs in Northeast China was around 3.7 yuan, and the futures market price was 0.5 tons per 3,700 yuan. Although the 1409 contract reflects the egg price in September 20 14, the futures price is close to the historical highest value of the contract, and the spot premium of futures is nearly1June 20 14.

When retail investors see such a big price difference between futures and spot, they instinctively enter short positions. In order to stifle small and medium-sized retail investors, the main funds keep pushing up prices, and at the same time, they open a large number of bills, deliberately making the price difference between futures and spot bigger and bigger, so as to attract more retail investors to go short. As long as they hold out until August 30th, everything will be fine. Retail investors were flattened, and the long orders of large institutions earned a lot of money, so they built a number of short orders without delay, and then marched all the way to the delivery date. Sorry, retail friend, this is our delivery price. That is to say, before September, large households manipulated the market, prices kept rising, and retail investors instinctively entered the market to short, but before September, large households would not let you succeed, and they would keep pushing up prices. It was cleared as soon as it entered September, and the big family really missed the price by a thousand miles.

The function of the futures market is to discover prices rather than suppress them. It is normal for the futures market to compete for funds. However, if the big money owners rob their opponents with huge amounts of money in the egg futures, the vicious driving price will fluctuate and stay away from the market price, which will seriously damage the interests of the market and investors.

Coincidentally, there are several famous cases of egg futures manipulation in the United States. Let's look at one.

1953 a large food distributor company in the western United States was accused of manipulating the price of an egg futures contract that expired in February. By continuously buying egg futures, the company's position approached 77% of the market three days before the delivery date. In the spot market, the company controlled the deliverable spot ratio to be close to 50%, which constituted a monopolistic behavior of abusing market position advantage and obstructing commodity trading, resulting in the futures contract price being much higher than the spot price of fresh eggs, so it was sued by the local court.

The United States is the first country to trade egg futures. From 65438 to 0898, the Chicago Butter and Egg Exchange was established to conduct forward trading of eggs and other commodities. 19 19 officially changed its name to Chicago Mercantile Exchange, and eggs became futures and began trading.

In the 1980s, the industrial structure of eggs in the United States changed, small farms were gradually annexed, and laying hens farms became larger and larger, and began to supply eggs directly to large supermarkets, replacing grocery stores as the main sales channels of eggs. The price of eggs tends to be stable and no longer faces the risk of price fluctuation. So egg futures stopped trading on September 1982.