Due to the seasonal rebound of consumption and the blocked circulation of frozen products, the price of pork in China has risen sharply. With the official listing of the original pig futures on Dalian Commodity Exchange, many people are worried that futures will amplify the price fluctuation of pork. In this regard, experts said that the main factor determining the price of pork is the relationship between supply and demand. At present, the demand for pork in China is relatively stable. Although the supply is still tight, there is limited room for future price increases. Shengzhu Futures, the first real-time delivery futures variety in China, was officially listed on Dalian Commodity Exchange. The influence of original pig futures on domestic pork prices and pig cycle has become the focus of attention. Will futures affect the direction of pig prices? What impact will it have on the whole industry? On related hot topics, the reporter of Economic Daily interviewed industry experts and scholars. ?

"The main factor that determines the price of pigs is the relationship between supply and demand. The listing of raw pig futures will not directly affect the supply and demand fundamentals of pigs. At present, the demand for pork in China is relatively stable, but the supply will change due to various factors such as the new coronavirus epidemic, reproductive profits and policy orientation. Change the fundamentals of domestic pork supply and demand, and finally determine the direction of pork prices. " Chen Yanjun said that he is a senior expert in the futures market and has served as a senior analyst in Zhengzhou grain wholesale market for many years. ?

so, what is the current domestic supply and price of pork? "China's pig production has greatly recovered, but the overall supply is still tight." Zhu Zengyong, an associate researcher at Beijing Animal Husbandry and Veterinary College of China Academy of Agricultural Sciences, said in an interview. The influence of pig futures on the pig cycle: the fundamentals of supply and demand determine the pig cycle. "Although some people worry that futures will amplify the fluctuation of pork prices and disrupt the pig cycle, the pig cycle will be disturbed. K] is the largest agricultural and sideline product with market value in China, with a market scale of over one trillion yuan. -The variety of US dollar futures on the market is very limited. " Chen Yanjun believes that relevant companies can focus on becoming bigger and stronger. Don't worry about the listing and trading of Shengzhu Futures. "Although the listing of Sheng pig futures will not directly affect the listing and trading of Sheng (k) futures. In the industrial chain of interplanting, slaughter and trade, the value of hedging futures is very high. The company provides a channel to avoid price risks and maintain and increase value. " Chen Yanjun said. ?

The so-called futures hedging means that the operator takes the futures contract as a temporary substitute for buying and selling commodities in the spot market in the future. They buy and sell in advance and lock prices in advance to avoid the risk of large fluctuations in market prices. The breeding cycle of pigs is relatively long. It usually takes about 1 months to grow from a pregnant pig to a baby pig. In the long breeding cycle, diseases, supply and demand, feed prices and many other aspects are full of uncertainties, which may lead to the future production price of pigs deviating greatly from expectations. Using the tool of pig futures, when the price of pig futures is moderate, breeding companies can pre-sell the same amount of pig futures in the futures market to lock in profits in advance. At the same time, the original pig futures can also help the slaughter and processing links to buy in advance to prevent the irrational price increase of the original pig in the future. The reporter learned from Dalian Commodity Exchange that leading domestic pig breeding companies such as Muyuan, Wenshi, Zhengbang Technology, New Hope and Zhengda will all enter the market and participate in pig futures delivery business.